If a company's common stock has a par value of $40 million, paid-in capital of $70 million, and retained earnings of $750 million, what is its total equity?

To determine the total equity of a company, you need to sum the values of common stock (par value), paid-in capital, and retained earnings. In this case, the par value of the common stock is $40 million, the paid-in capital is $70 million, and the retained earnings amount to $750 million.

The calculation for total equity is as follows:

• Common Stock (par value): $40 million

• Paid-in Capital: $70 million

• Retained Earnings: $750 million

Adding these amounts together gives:

Total Equity = Common Stock + Paid-in Capital + Retained Earnings

Total Equity = $40 million + $70 million + $750 million = $860 million.

Therefore, the total equity of the company is $860 million, which aligns with the selected answer. This total reflects the assets available to shareholders after liabilities have been accounted for, thus representing the net worth of the company.