Book value of common stockholders' equity of FedEx, May 31, 2020 (figures in $ millions) Common shares ($0.10 par value per share) Additional paid-in capital Retained earnings Treasury shares at cost Other Net common equity Note: Authorized shares (millions) Issued shares, of which: Outstanding shares Treasury shares $ 37 3,093 23,718 (7,696) (365) $ 18,787 323 47 Required: a. Suppose that FedEx now issues 6 million shares at $150 a share. Update the table below with the new values. b. What would happen to the book value of common stockholders' equity if instead FedEx bought back 6 million shares at $150 per share?
Book value of common stockholders' equity of FedEx, May 31, 2020 (figures in $ millions) Common shares ($0.10 par value per share) Additional paid-in capital Retained earnings Treasury shares at cost Other Net common equity Note: Authorized shares (millions) Issued shares, of which: Outstanding shares Treasury shares $ 37 3,093 23,718 (7,696) (365) $ 18,787 323 47 Required: a. Suppose that FedEx now issues 6 million shares at $150 a share. Update the table below with the new values. b. What would happen to the book value of common stockholders' equity if instead FedEx bought back 6 million shares at $150 per share?
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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Transcribed Image Text:Book value of common stockholders' equity of FedEx, May 31, 2020 (figures in $ millions)
Common shares ($0.10 par value per share)
Additional paid-in capital
Retained earnings
Treasury shares at cost
Other
Net common equity
Note:
Authorized shares (millions)
Issued shares, of which:
Outstanding shares
Treasury shares
Required:
a. Suppose that FedEx now issues 6 million shares at $150 a share. Update the table below with the new values.
b. What would happen to the book value of common stockholders' equity if instead FedEx bought back 6 million shares at $150 per
share?
Required A
Complete this question by entering your answers in the tabs below.
Required B
$ 37
3,093
23,718
(7,696)
(365)
$ 18,787
323
47
Common shares ($0.10 par value per share)
Additional paid-in capital
Retained earnings
Treasury shares at cost
Other
What would happen to the book value of common stockholders' equity if instead FedEx bought back 6 million shares at $150
per share?
Note: Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place.
$
17,887.0
900.0
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