What is the per share cost of the treasury stock purchased? Round your answer to 2 decimal places.
Q: If flotation cost is 1%, what is the cost of preferred stock that sells for $81 per share and has a…
A: The cost of the preferred stock refers to the amount the pays in return for the gains it received by…
Q: What is the current price of a share of stock when the current dividend is P5, the growth rate is…
A: Under dividend growth model, the current price of stock can be calculated as follows:…
Q: Explain the different types of preferred stock dividends and their effect on book value per share.
A: Preferred stock: Preferred stock have a preference to receive dividend than before any common…
Q: The firm's cost of preferred stock financing is %. (Round to two decimal places.)
A: Preferred stock are those stock which carry the following rights: Investors of the preference stock…
Q: The market price of a share of preferred stock is $20.62 and the dividend is $2.56. What discount…
A: Discount rate = Dividend / Stock price
Q: How do you get 41,539,082 for the number of shares?
A: Given that, Consideration paid = $2.8 billion i.e. $2,800,000,000 Implied share price of cooper =…
Q: What will be the dividend of a preferred share that has a par value of $ 215.00 with a placement…
A: The dividend is the fixed amount paid to the preference shareholders. The cost of preferred shares…
Q: How much is the total share capital? What is the issue price of preferred shares? Per share What is…
A: Step 1 Share capital is the part of total stockholder’s equity.
Q: Market capitalisation is equal to O a. Number of shares x EPS O b. Number of shares x Book…
A: Market capitalisation means value of the company in the market.
Q: If Muscat Tiles has preferred stock at $120 per share, the cost of preferred stock 0.135, then what…
A: The dividend are the returns provided to the shareholders by the company. The dividend are the…
Q: What are the formulas used to get the answers in stock issuance (in dollars), stock issuance (in…
A: Stock Issuance refers to the amount that is generated by the company when it sold its shares /…
Q: gs per share equal $4, in what price range you estimate its stock should be selling?
A: SOLUTION:- 7-14 Present value (PV) = sum of present value of all future cash flows Assuming returns…
Q: How much will be the total transaction fee of buying 2,500 shares of a stock with a market value of…
A: The total transaction price can be calculated by multiplying the total number of shares by market…
Q: What does the P/E ratio measure? A . Th e “multiple” that the stock market places on a company’s…
A: P/E ratio :
Q: If a share of preferred stock sells for $50 and it pays a dividend of $5 per share, what is the…
A: Preferred stock is an equity stock that is sold by a corporation to raise equity funds for a…
Q: What is the formula for Price to Book Value ( MV/BV) ratio ? If Current Price = 126, Total Equity =…
A: The “Price/Book Value” Ratio (P/BV) is calculated by dividing the price of a share of stock by the…
Q: he cost for the following preferred stock. (Click on the icon here in order to copy the conten Par…
A: Par value = $ 75 Dividend rate = 12% Annual dividend = Par value*Dividend rate…
Q: stock price does this correspond to. What is the price per share? (Round answer 3 decimals)
A: Share Repurchase: Share repurchase also known as buyback refers to the decision made by the company…
Q: If flotation cost is 1%, what is the cost of preferred stock that sells for $84 per share and has a…
A: given, F = 1% Price = $84 face value = $100 yield = 6.2%
Q: 1. What is the total shareholders' equity? 2. For how much per share was the treasury stock…
A: Stockholder’s equity is a part of balance sheet which shows the total owner’s equity that is…
Q: If Muscat Tiles has preferred stock at $120 per share, the cost of preferred stock 0.129, then what…
A: The share price is the current market price of the share. It is the price of the share at any…
Q: When calculating the weighted average number of common shares, how are stock dividends and stock…
A:
Q: What is the rate of return when 20 shares of Stock A, purchased for $15/share, are sold for $340?…
A: The rate of return is the percentage of profit or loss above the investor's initial investment.
Q: What is the current price of a share of stock when the current dividend is P5, the growth rate is…
A: The current price of the stock can be estimated with the help of dividend discount model
Q: What happens to the par value, the share’s trading price, and the number of shares outstanding in a…
A: If stock is split in a 2-for-1, there were following changes: Par value: The par value of share gets…
Q: How do you calculate outstanding shares of stock?
A: Outstanding stock refers to the number of shares that are held by the existing stockholders of the…
Q: Suppose that you have the following information: Net income = $1000 Number of shares = 100 shares…
A: Net income = $1000 Number of shares = 100 shares Share price = $20
Q: How do I calculate the net abount of stock issued when the firm pays X amount of dollars in…
A: Company give dividends out of net income to shareholders to reward shareholders So that they…
Q: Share commom stock dividend is $1.00 , g=5.4 and required return is 11.4%, What is the stock price?
A: Current Divided (D0) = 1 Growth rate(g) =5.40% Required return (k)=11.40% Current stock price =…
Q: Here are data on two stocks, both of which have discount rates of 15%:…
A: Discount Rate = 15% Stock A Return on equity = 15% Earnings per share = 3.50…
Q: Required: Provide the answers to each of the following questions: 1. What is the total issue price…
A: I am answering the first three sub-parts of first question as per bartleby policies. Please…
Q: stock purchases at the price per share of General Dynamics 98.59, How many shares of the stock can…
A: No. of shares purchased = Total Amount / Price Per Share
Q: Assuming that 163,000 will be distributed as a dividend in the current year, how much will the…
A: Preferred Stock Holders: These are holders of preferred stock and have priority of the firm's…
Q: Compute for the following: 1) How many shares were issued for the Preference Share Capital? 2) How…
A: Disclaimer: "Since the question you asked contains multiple sub-parts so we solved the first three…
Q: What would be the weight used for equity in the computation of FarCry's WACC? (Round your answer to…
A: Weighted average cost of capital (WACC) refers to the joint cost of company's capital from all the…
Q: A firm issues preferred stock with a dividend of $3.42. If the appropriate discount rate is 7.05%…
A: Preferred stock is a security that pays a fixed income indefinintely.
Q: What is the price of a share today if dividend today (D0) is $5, discount rate (R) 10%, and dividend…
A: Dividend Growth Model: Also known as GGM (Gordon Growth Model), it is a model that helps a…
Q: A property holdings declared of P9 per share for the common stock. If the common stock oses at P76,…
A: Dividend = P9 Stock closing price = P76
Q: Explain the treasury-stock method as it applies to options and warrants in computing dilutive…
A: Potentially dilutive security: Potentially dilutive security refers to a security that can be…
Q: You bought a stock for $39 and you received dividends of $4. The stock is now selling for $47. What…
A: Return on any asset can be computed by the net inflow of cash from the asset dividend by the…
Q: What is the value of a preferred stock
A: Preferred stocks is a type of equity. The holders of preferred stock will get preference over common…
Treasury stock is brought back by issuing company to reduce the outstanding stock in the open market.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 500,000 shares of common stock at 8, receiving cash. b. Issued 10,000 shares of preferred 1% stock at 60. c. Purchased 50,000 shares of treasury common for 7 per share. d. Sold 20,000 shares of treasury common for 9 per share. e. Sold 5,000 shares of treasury common for 6 per share. f. Declared cash dividends of 0.50 per share on preferred stock and 0.08 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.
- Selected stock transactions The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 400,000 shares of common stock at 11, receiving cash. b. Issued 5,000 shares of preferred 2% stock at 90. c. Purchased 150,000 shares of treasury common for 10 per share. d. Sold 80,000 shares of treasury common for 13 per share. e. Sold 20,000 shares of treasury common for 9 per share. f. Declared cash dividends of 1.50 per share on preferred stock and 0.06 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.
- Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.Reporting paid-in capital The following accounts and their balances were selected from the adjusted trial balance of Point Loma Group Inc., a freight forwarder, at October 31, the end of the current fiscal year: Prepare the Paid-in capital portion of the Stockholders Equity section of the balance sheet using Method 1 of Exhibit 9. There are 375,000 shares of common stock authorized and 85,000 shares of preferred stock authorized.
- Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.