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    Vessel06's Avatar
    Vessel06 Posts: 1, Reputation: 1
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    #1

    Sep 24, 2009, 10:03 PM
    Paid-in capital in excess of Par
    Hello All,

    Does anyone know the formula for finding the Paid-in Capital in excess of par? I'd really appreciate it! Thanks in advance!
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Sep 24, 2009, 10:34 PM

    The excess of par is quite literally what it says it is: the amount above par.

    If par is $10 and you issue it for $15, then you have $5 in excess of par, PER SHARE.

    You can find it either by multiplying that $5 by the number of shares issued. Or you can multiply the $15 of cash received by the number of shares, and then subtract off the shares at par, which leaves you with the "excess" part.

    It's actually not that difficult.
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