A corporation purchases 89000 shares of its own $30 par common stock for $47 per share, recording it at cost. What will be the effect on total stockholders’ equity? Decrease by $4183000 Increase by $4183000 Increase by $2670000 Decrease by $2670000

A corporation purchases 89000 shares of its own $30 par common stock for $47 per share, recording it at cost. What will be the effect on total stockholders’ equity? Decrease by $4183000 Increase by $4183000 Increase by $2670000 Decrease by $2670000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The owners' equity accounts for Vulcano International are shown here: Common stock ($.40 par value)…

A: A 4-for-1 stock split means that a stockholder will have four (4) times as many shares as they had…

Q: Given the image: 1.) If a person owned 150 shares, how much in dividends did the person make last…

A: Given ÷ Dividend per share = 1.60 No. Of shares owned by a investor = 150

Q: Based on the information given below on Harmony Incorporated calculate the following: 1) Net Income;…

A: Earnings per share (EPS) is a financial metric that indicates the amount of a company's net income…

Q: A company had stock outstanding as follows during each of its first 3 years of operations: 1,000…

A: Dividend is the amount of return that an entity has to pay to the shareholders. It is paid to both…

Q: Shareholder Profitability Ratios The following information pertains to Capital Corporation: Net…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: A corporation purchases 10,000 shares of its own $20 par common stock for $35 per share, recording…

A: Stockholders' equity is the amount of a company's assets that remain in its possession after all…

Q: Given the following information, what will be the ex-dividend price of CSS Corp. common stock?…

A: To calculate the ex-dividend price of the stock correctly, follow these steps:1. Determine the…

Q: W The net income available to stockholders is $230,000. The beginning number of common shares…

A: EARNING PER SHARE Earning Per Share is the ratio between net income for common stockholders equity…

Q: a corporation purchases 17000 shares of its own $20 par common stock for $25 per share, recording it…

A: Share repurchase, also known as stock buyback, is a financial strategy in which a company buys back…

Q: A corporation purchases 31,000 shares of its own $10 par common stock for $39 per share, recording…

A: STATEMENT OF SHAREHOLDERS EQUITYStatement of Shareholders Equity is also Known as Changes in…

Q: Please use the 2018 data for Johnson and Johnson (JNJ) presented below (All numbers in millions…

A: The perpetual growth model is Gorden Model. As per gorden the current price of share will be…

Q: Beca Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash…

A: Shareholder equity helps investors and other companies in analyzing the growth or financial position…

Q: What effect will a two-for-one stock split have on the following items found on a firm's financial…

A: A stock split is an increase in the number of shares for ex. in the case of for two-for-one stock…

Q: What is the total annual dividend received from owning 75 shares of stock A, Company A issues a…

A: Dividend is defined as the distribution of profits by the company to their shareholders. When the…

Q: If Dakota Company issues 1,500 shares of $6 par common stock for $75,000, O Common Stock will be…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: The capital structure for Cain Supplies is: Cain Supplies Debt 108 Common stock, $10 par Total…

A: The stock price refers to the current market value or trading price of a single share of a publicly…

Q: In total how much did it cost the company to buy back its own shares of stock how much did the…

A: The treasury stock includes the own shares of the company that are purchased from the shareholders…

Q: A corporation has $1,730,000 to distribute in dividends and did not distribute dividends the…

A: A dividend is a kind of gift that a business delivers to its shareholders, whether it be cash or…

Q: What would be the park value for one share of common stock after 2:1 stock split If the company…

A: The par value of shares is the cost of one share of the company. The stock split may increase or…

Q: For each dividend and stock split issued, determine the impact—increase, decrease, or no effect—on…

A: ANSWER When dividend is paid out of cash there is decrease in cash and dividend payable is decrease…

Q: Foerch Corporation declared a stock dividend of 4,000 shares when the par value use $1 per share,…

A: Solution: Declaration of stock dividend results in decrease in retained earnings and increase in…

Q: Francis Inc. has the following stockholders' equity section in its November 30, 2019, balance sheet:…

A: Common stock: It is a kind of security that owns ownership of equity in a firm or company. Common…

Q: The following information is available for Splish Brothers Corporation. 2025 2024 Average common…

A: Payout ratio is calculated by dividing dividend paid to common stockholders' by net income. Return…

Q: What is the annual rate of return on the stock (percentage) before tax? Date Jan. 1, 2005 Feb. 1,…

A: The annual rate of return is the amount that is earned on an investment over a 12-month period and…

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: Consider the following information: Beginning number of shares Ending number of shares Dividend per…

A: The correct answer is: (D) 3.0% Dividend yield is : Dividend per share / Market price per share…

Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

A corporation purchases 89000 shares of its own $30 par common stock for $47 per share, recording it at cost. What will be the effect on total stockholders’ equity?

Decrease by $4183000

Increase by $4183000

Increase by $2670000

Decrease by $2670000

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

klp.4
Based on the information given below on Harmony Incorporated calculate the following: 1) Net Income; 2) Change to Retained Earnings; 3) EPS; 4) Dividends Per Share: 5) Dividend Yield EBIT Interest expense Tax 25,000,000 40% Preferred shares outstanding&div 200,000 ($8 each) Common shares outstanding Dividend Payout ratio Current stock price 2,000,000 50% $30
I need the answer as soon as possible
If C CORP. had 3,198,000 shares of common stock outstanding when it paid dividends last year, how much did it pay in dividends? Portion of Stock Exchange Listing Name Symbol Open High Low Close Net Chg %Chg Volume 52 Wk High 52 Wk Low Div Yield P/E Ytd % Chg A CORP. A 30.6 31.24 30.5 31.12 0.58 1.9 994,770 32.9 19.4 ... ... 24 6.6 B LTD. B 28.14 28.57 27.67 28.42 0.28 1 270,400 28.87 16.11 0.48 1.7 14 25.1 C CORP. C 48.6 49.07 48.52 28.42 0.29 0.6 1,598,100 50.33 25.43 1.48 3 ... 52.1 D LTD. D 14.35 14.58 13.92 14.51 0.16 1.11 54,900 16.55 12.6 ... ... ... −6.1 E CORP. E 23.76 24.3 23.62 24.03 0.23 0.97 570,711 27.45 17.95 ... ... 172 −9.2
Hayes Corporation has $300 million of common equity, with 6 million shares of common stock outstanding. If Hayes' Market Value Added (MVA) is $162 million, what is the company's stock price? Group of answer choices $73.15 $77.00 $80.85 $66.02 $69.49
If C CORP. had 3,518,000 shares of common stock outstanding when it paid dividends last year, how much did it pay in dividends? Click the icon to view the portion of Stock Exchange Listing. Data table TERE AL shares of common stock Quistenalleg when it bald dividends last year now much did it pay in dividend Portion of Stock Exchange Listing Name A CORP BLID C CORP DLTD. E CORP. Symbol Open High 30.6 31.24 28.14 28.57 48.6 49.07 14.35 14.58 23.76 24.3 A B C D E CIDO 994,770 32.9. 270,400 28.87 19.4 16.11 Low Close Net Chg %Chg Volume 52 Wk High 52 Wk Low Div 30.5 31.12 0.58 1.9 1 0.6 1.11. 0.97 1,598,100 50.33 25.3 27.67 28.42 0.28 48.52 28.42 0.29 13.92 14.51 0.16 23.62 24.03 0.23 54,900 16.55 12.6 570,711 27.45 17.95 Print Done Yield P/E Ytd % Chg 24 6.6 14 25.1 52.1 -6.1 172-9.2 yove THE 0.48 1.7 1.48 3
Ggh
Dividends Per Share (DPS)During 2020 your corporation has 460,000,000 shares of stock outstanding, and the Board of Directors declared $400,000,000 in dividends. What is the dividends per share? Please show your formula and calculations in the space provided.
A corporation purchases 10,000 shares of its own $20 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity? Select one: O a. increase, $200,000 O b. increase, $350,000 Oc decrease, $200,000 O d. decrease, $350,000
A company reports the following: Net income $420,200 Preferred dividends $31,130 Shares of common stock outstanding 33,000 Market price per share of common stock $34.19 Calculate the company's earnings per share on common stock. Round your answer to the nearest cent.
The following is from BC Corp. balance sheet: Common Stock (1 million shares) Retained Earnings $15,000,000 15,000,000 30,000,000 Additional information: Earnings = $6,600,000 P/E ratio = 20 a. What is the impact on the B/S if the firm declares a 10% stock dividend? b. What is the value of the stock dividend to an investor who owns 100 shares?