Authorized and available shares Aspin Corporation's charter authorizes issuance of 2,100,000 shares of common stock. Currently, 1,500,000 shares are outstanding, and 500,000 shares arebeing held as treasury stock. The firm wishes to raise $24,000,000 for a plant expansion. Discussions with its investment bankers indicate that the sale of new common stock will net the firm $30 pershare.a. What is the maximum number of new shares of common stock that the firm can sell without receiving further authorization from shareholders?b. Judging by the data given and your finding in part a, do you think the firm will be able to raise the needed funds without receiving further authorization?c. What must the firm do to obtain authorization to issue more than the number of shares found in part a?

Authorized Shares: These are the maximum number of shares a corporation is legally allowed to issue…

Answered: Authorized and available shares Aspin…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Queenstown Corporation issues 4,000, $4 cumulative preferred shares at $80 each and 12,000 common shares at $18 at the beginning of 2022. Each preferred share is convertible into four common shares. During the years 2022 and 2023, the following transactions affected Queenstown Corporation's shareholders' equity accounts: 2022 Dec. 10 Declared and paid $12,000 of annual dividends to preferred shareholders. 2023 Dec. 10 Dec. 21 Required: a) b) Declared and paid the annual dividend to preferred shareholders and a $4,000 dividend to common shareholders. The preferred shares were converted into common shares. Journalize each of the 2022 and 2023 transactions. After the preferred shares are converted, what is the total number of common shares issued?
Company A has earrings per share of $3 with 20 million shares outstanding. The current market price of Company As Stock is $40 per share. Company A is in process of acquiring Company B., which has earnings per share of $1.50, 4 million of common stock shares. Currently, Company Bs stock trades at $25. The acquisition will be done 100% by stock issue by Company A. Exchange ratio will be set in a way that, at current pre-announcement share prices for both firms, the offer represents a 10% premium to buy Company B. What will be the price per share of Company A immediately after the announcement of acquisition? What will be subsequent price action in both Company As and Company Bs stocks? Explain briefly.
Journalize the following transaction: Mining corporation is authorized to issue 50,000 shares of $500 par value 7% preferred stock. It's also authorized to issue 5,000,000 shares of $3 par value common stock. In its first year, the corporation has the following transaction: 1-May issued 3,000 shares of preferred stock for Cash at $750 per share. 23-May issued 6,000 shares of common stock at $12.50 Per share. Jun.10 issued 5,000 shares of common stock for equipment without a readily determinable value. The stock is currently trading at $11 per share. Journalize the transactions
Current Attempt in Progress On May 1, Oriole Corporation incorporated and authorized 193,000 preferred shares and an unlimited number of common shares. On May 2, Oriole issued 2,800 common shares for $16 per share. On June 15, it issued an additional 1,100 common shares for $17 per share. On November 1, Oriole issued 160 preferred shares for $29 per share. On December 15, it issued an additional 160 preferred shares for $33 per share. (a) Record the share transactions. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
The corporate charter of Blossom Corporation allows the issuance of a maximum of 4,260,000 shares of $1 par value common stock. During its first three years of operation, Blossom issued 2,215,200 shares at $15 per share. It later acquired 85,200 of these shares as treasury stock for $25 per share. Based on the above information, answer the following questions: (a) How many shares were authorized? Authorized shares i shares
Answer both the subparts a,b.if Answered within 30mins, it would be great. Bridgeport Corporation’s charter authorized 2 million shares of $13 par value common shares, and 300,000 shares of 8% cumulative and non-participating preferred shares, with a par value of $100 per share. The corporation made the following share transactions through December 31, 2020: 300,000 common shares were issued for $4.50 million and 10,000 preferred shares were issued for machinery valued at $1,501,000. Subscriptions for 10,100 common shares have been taken, and 25% of the subscription price of $17 per share has been collected. The shares will be issued upon collection of the subscription price in full. In addition, 9,000 common shares have been repurchased for $16 and retired. The Retained Earnings balance is $240,000 before considering the transactions above. a) Prepare the shareholders’ equity section of the SFP in good form. b) Prepare the shareholders’ equity section of the statement of financial…
Dadiangas Farmingtown Corporation is authorized by its charter to issue 10% preference shares at P100 par value, P1,000,000 and 15,000 ordinary shares at P100 par value. Q-13 How many 10% preference shares that the corporation is authorized to issue? 7-5 a) 10,000 shares b) 15,000 shares Q-14 How much is the Authorized Share Capital-Ordinary? a) P1,000,000 b) P1,500,000 a) P500 b) P10,000 c) 20,000 shares d) none of these Q-15 If Marivic Peñaflor, (not an incorporator) subscribed to 100 ordinary shares at P105 but pays only P5,000, at what amount will be charged to "Share Premium "? a) P9,500 b) P10,000 c) P2,000,000 d) none of these c) P10,200 d) P10,500 Q-16 (Refer to item 16) If Marivic Peñaflor makes full payment of her subscription balance, at what amount is credited to "Share Capital" upon issuance of certificate? c) P10,500 d) none of these
An investor received a term sheet from a venture capitalist, the key terms of which are summarized in the following table: Amount and Securities: 4,000,000 shares of Series A Preferred Stock. Price Per Share: $1.00 per share (the “Original Purchase Price”). Current Outstanding: 6,500,000 shares of Common Stock. In addition, the company has reserved for issuance under its stock option plan an aggregate of 1,500,000 shares of Common Stock (Reserved Shares). Liquidation Preference: In the event of any liquidation, dissolution or winding up of the Company, the proceeds shall be paid as follows: First pay 1.0 times the Original Purchase Price on each share of Series A Preferred. Thereafter, Series A Preferred participates with Common Stock pro rata on an as-converted basis. Optional Conversion: The Series A Preferred converts 1:1 to Common Stock at any time at the option of the holder. Pre-Money Valuation $8,000,000 Calculate the payoff at maturity to Series A Preferred Stock as well as…
Use the following information for the next three (3) questions: At the beginning of current year, Axed Company was authorized to issue share capital of 100,000 shares with P30 par value. Axed had the following share capital transactions during the year: January 1 Issued 80,000 shares at P70 per share May 1 Reacquired 4,000 treasury shares at P65 per share July 1 Approved a share split of 5 for 1 October 31 Issued a 10% share dividend when the market value of a share is P25 December 31 Reissued all of the treasury shares at P35 December 31 Net income for the year was P4,500,000. What total amount should be reported as share premium at year-end?
Answer in a memorandom entry
Urmila
ESPAÑOL INGLÉS FRANCÉS ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC distributes, to its shareholders, the shares of XYZ in the form of a dividend. This dividend must be recorded in ABC's books for to. the market value of XYZ stock. b. the market value of ABC shares. С. the book value of XYZ stock. Enviar come MacBook Air

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