**Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding**The following is the stockholders' equity section from Chipotle Mexican Grill, Inc.'s balance sheet (in thousands, except per share data).---**Shareholders' Equity (December 31, 2014)**| Category | Amount ($) ||--------------------------------------------|---------------|| Preferred stock, $0.01 par value, 600,000 shares authorized, no shares issued as of December 31, 2014 | — || Common stock, $0.01 par value, 230,000 shares authorized, and 39,123 shares issued as of December 31, 2014 | 391 || Additional paid-in capital | 1,300,547 || Treasury stock, at cost, 4,605 common shares at December 31, 2014 | (749,521) || Accumulated other comprehensive income (loss) | (429) || Retained earnings | 1,722,271 || **Total shareholders' equity** | **2,273,259** |---a. **Show the computation to derive the $391 thousand for common stock.**Calculation:39,123 shares X $0.01 = 391 thousand (rounded to the nearest whole number)b. **At what average price has Chipotle issued its common stock?**Round to two decimal places.$0.01 (incorrect)c. **How many shares of Chipotle common stock are outstanding as of December 31, 2014?**0 thousand (incorrect)d. **At what average cost has Chipotle repurchased its treasury stock as of December 31, 2014?**Round to two decimal places.$0 (incorrect)

Treasury stock or reacquired stock refers to the shares which are bought back from existing…

a. Show the computation to derive the $391 thousand for common stock. 39,123 V shares X $ 0.01 391 v thousand (round to the nearest whole number) b. At what average price has Chipotle issued its common stock? Round to two decimal places. $ 0.01 c. How many shares of Chipotle common stock are outstanding as of December 31, 2014? x thousand d. At what average cost has Chipotle repurchased its treasury stock as of December 31, 2014? Round to two decimal places. $ 0

a. Show the computation to derive the $391 thousand for common stock. 39,123 V shares X $ 0.01 391 v thousand (round to the nearest whole number) b. At what average price has Chipotle issued its common stock? Round to two decimal places. $ 0.01 c. How many shares of Chipotle common stock are outstanding as of December 31, 2014? x thousand d. At what average cost has Chipotle repurchased its treasury stock as of December 31, 2014? Round to two decimal places. $ 0

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: ou are given the following information concerning two stocks that make up an index. Assume the…

A: A statistical metric called an index is employed to depict the performance of a market or a…

Q: Using the table below, answer questions 6 to 9. Consider the following Price and Dividend data for…

A: Variable in the question:Purchase price on December 31,2008=$14.64Dividend received on: January…

Q: XYZ stock price and dividend history are as follows: Dividend Paid at Year-End $4 Year 2018 2019…

A: Beginning price in the year 2018 = $132Beginning price in year 2019 = $147Beginning price in year…

Q: Assume you purchased 236 shares of XYZ common stock on margin at $85.29 per share from your broker.…

A: the amount borrowed from the broker is total amount less the initial margin

Q: Assume the issuer incurs $1 million in other expenses to sell 3 million shares at $40 each to an…

A: Number of Shares Issued: 3 millionOffering Price: $40First-day Closing Price: $70

Q: Suppose that in July 2022, Nike Inc. had EBITDA of $6,561 million, excess cash of $12,944 million,…

Q: The following data pertains to Kyne Co.’s investments in marketable equity securities:…

A: Unrealised Gain: An unrealised gain is a potential profit that can arise from an investment. It is…

Q: You purchased 100 shares of Pepsico stock in January 2012 for $55 per share. Each year you received…

A: The capital gain (or loss) and the total dividends received over the investment period. The formula…

Q: Using the stock table for Dell Technologies below, calculate the earnings per share. Round your…

A: EPS can be calculated from given P/E ratio we know that, P/E ratio (Price earnings ratio) = Share…

Q: On August 19, 2004, Google completed its IPO of 20.0 million shares to the initial investors at $85…

A: Value of underpriced : It is the difference of Closing price of share at first trading day and share…

Q: Consider the table shown below to answer the question posed in part a. Parts b and c are independent…

A: The question is based on the concept of Corporate Valuation

Q: Karsan Otomativ had 757 million shares outstanding with a book value of $41.0 per share in 2020. The…

A: Book value of debt It is the total amount the company owes, which is recorded in the company books.…

Q: Everest Inc's preferred stock pays a dividend of $1.10 per quarter, and it sells the preferred stock…

A: Dividend = $1.10 Preferred stock price = $34.40 Dividend rate per quarter = Dividend /stock price

Q: A company has the following balance sheet (market values): Liabilities + Equity Debt Equity Assets…

A: Market value of equity = 1,200Number of shares outstanding = 300The current share price is

Q: Bermuda Triangle Corporation (BTC) currently has 570,000 shares of stock outstanding that sell for…

A: Stock split used to happen at the time of the company, which used to increase the number of shares…

Q: a) You purchase 516 shares of ABC Co. stock on margin at a price of $37. Your broker requires you to…

A: STEP 1 MARGIN CALL A margin call is a notification from the brokerage business that the amount of…

Q: Selected Stocks from the Dow Jones Industrial Average for a Day in 2015 me 8 DRES OGS Symbol Open…

A: Profit or loss on the stock sale Profit or loss on the stock sale is calculated as shown below.…

Q: XYZ stock price and dividend history are as follows: Beginning-of- $ 104 Year 2018 Year Price…

A: Return: The difference between the current value of investment and the initial value of investment…

Q: You have 35,000 shares of preferred stock outstanding in the market, with a current price of $101…

A: Current price per share: $101Dividend per share: $5.90

Q: Assume that you want to reindex with the index value at the beginning of the year equal to 100. What…

A: A stock market index refers to an indicator that considers the performance of a market segment based…

Q: On August 19, 2004, Google completed its IPO of 18.5 million shares to the initial investors at $80…

A: Dollar Value of the underpricing = (Closing price - Issue Price) * No. of shares

Q: (Cost of preferred stock) The preferred stock of Walter Industries Inc. currently sells for $36.46 a…

A: Cost of capital for preferred stock of the firm is defined as the rate of return, which actually…

Q: What is the market price of a share of stock for a firm with 100,000 shares outstanding, a book…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: common stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ What…

A: The objective of the question is to calculate the price of a share of the company's common stock and…

Question

100%

**Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding**

The following is the stockholders' equity section from Chipotle Mexican Grill, Inc.'s balance sheet (in thousands, except per share data).

---

**Shareholders' Equity (December 31, 2014)**

| Category | Amount ($) |
|--------------------------------------------|---------------|
| Preferred stock, $0.01 par value, 600,000 shares authorized, no shares issued as of December 31, 2014 | — |
| Common stock, $0.01 par value, 230,000 shares authorized, and 39,123 shares issued as of December 31, 2014 | 391 |
| Additional paid-in capital | 1,300,547 |
| Treasury stock, at cost, 4,605 common shares at December 31, 2014 | (749,521) |
| Accumulated other comprehensive income (loss) | (429) |
| Retained earnings | 1,722,271 |
| **Total shareholders' equity** | **2,273,259** |

---

a. **Show the computation to derive the $391 thousand for common stock.**

Calculation:

39,123 shares X $0.01 = 391 thousand (rounded to the nearest whole number)

b. **At what average price has Chipotle issued its common stock?**

Round to two decimal places.

$0.01 (incorrect)

c. **How many shares of Chipotle common stock are outstanding as of December 31, 2014?**

0 thousand (incorrect)

d. **At what average cost has Chipotle repurchased its treasury stock as of December 31, 2014?**

Round to two decimal places.

$0 (incorrect)

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 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

Automatic Data Processing recently issued $150 million of 61/2 percent convertible debentures maturing in 2011. The debentures are convertible into common stock at $83.45 a share. The company's common stock was trading at about $67 a share when the convertibles were issued. How many shares of common stock can be obtained by converting one $1,000 par value debenture; that is, what is the conversion ratio?
Hh1.
You purchased 357 shares of PQR, Inc., stock on 64% margin when the stock was selling fo $33.9 a share. The stock is currently selling for $36.18 a share. What is your current equity position (in $)? Answer to two decimals.
On January 3, 2022 you purchased 275 shares of Bird House, Inc. at $61.38 per share. Since then, you have received the following dividends per share: $0.17 (January 17), $0.17 (April 16). $0.19 (July 18). $0.19 (October 17), $0.19 (January 20). The current price of the stock is $63.09. What is the Capital Gains (Loss) Yield in percent (%)? (recurring content question) 1.71% -2.71% 2.21% O 2.79% O 2.71%
Hi, If a company has 32,000 common stock shares outstanding $10 par value, then purchases 2,300 shares of treasury stock at $25 per share. How would this be jouralized? Also, after those transaction the same company declared a $0.10 per share cash dividend on the common stock outstanding. How would this be jouralized?
You found the following stock quote for DRK Enterprises, Inc., at your favorite website. You also found that the stock paid an annual dividend of $.93, which resulted in a dividend yield of 1.2 percent. YTD Company DRK Enterprises Symbol DRK DAILY Vol Close Chg 18,649,130 ?? 26 %Chg 0.36% %Chg 8.73% a. What was the closing price for this stock yesterday? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
You have 35,000 shares of preferred stock outstanding in the market, with a current price of $124 per share. What is the cost of preferred stock if the dividend per share is $6.20? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.) Cost of preferred stock %
You are given the following information concerning two stocks that make up an index. Assume the value-weighted index level was 300.45 at the beginning of the year. What is the index level at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Kirk, Inc. Picard Co. Index level Shares Outstanding 40,000 29,000 Price per Share Beginning of Year $38 73 End of Year $ 42 81
Using the P/E multiples approach to valuation, What is the estimated price of a stock if the firm’s P/E ratio is 18.2 and it’s earnings are $452,000? Assume that there are 100,000 shares of stock outstanding.
Consider the financial statements for the REIT given below. Assume that the net revenue includes a loss of $4,000,000 on an asset sale. This REIT has issued 1,000,000 shares. Similar REITs are trading at FFO multiples of 10x. What valuation (share price) does this information imply for the REIT? Net Revenue Less: Less: Interest expense Net income O 49.2 O 129.2 O 95.2 89.2 Operating expenses Depreciation and amortization Income from operations $20,000,000 9,800,000 4,400,000 5,800,000 $ 1,280,000 $ 4,520,000
The required return on the stock is 8.87%. Given the cash flows in the summary quote, what is the value of the stock? Answer
Bermuda Triangle Corporation (BTC) currently has 370,000 shares of stock outstanding that sell for $100 per share. Assume no market Imperfections or tax effects exist. Determine the share price and new number of shares outstanding if: (Do not round intermediate calculatlons. Round your prlce per share answers to 2 decimal places, e.g., 32.16, and shares outstanding answers to the nearest whole number, e.g., 32.) a. BTC has a five-for-three stock split. b. BTC has a 12 percent stock dividend. c. BTC has a 38.0 percent stock dividend. d. BTC has a four-for-seven reverse stock split. a. Price per share Shares outstanding b. Price per share Shares outstanding c. Price per share Shares outstanding d. Price per share Shares outstanding