Stanley started the firm with a $100,000 investment: his savings of $50,000 as equity and a $50,000 long-term loan from the bank. He had hoped tomaintain his initial 100 percent ownership in the corporation, but after experiencing a $50,000 loss during the first year of operation (2009), he sold 60percent of the stock to a group of investors to obtain needed funds. Since then, no other stock transactions have taken place. Although he owns only 40percent of the firm, Stanley actively manages all aspects of its activities; the other stockholders are not active in management of the firm. The firm
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sstock was valued at $4.50 per share in 2014 and at $5.28 per share in 2015.