Book value of common stockholders' equity of FedEx, May 31, 2020 (figures in $ millions) Common shares ($0.10 par value per share) $ 30 Additional paid-in capital 3,097 23,722 (7,756) (369) $ 18,724 Retained earnings Treasury shares at cost Other Net common equity Note: Authorized shares (millions) Issued shares, of which: Outstanding shares Treasury shares 260 40 Required: a. Suppose that FedEx now issues 4 million shares at $180 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 4 million shares at $180 pe share?
Book value of common stockholders' equity of FedEx, May 31, 2020 (figures in $ millions) Common shares ($0.10 par value per share) $ 30 Additional paid-in capital 3,097 23,722 (7,756) (369) $ 18,724 Retained earnings Treasury shares at cost Other Net common equity Note: Authorized shares (millions) Issued shares, of which: Outstanding shares Treasury shares 260 40 Required: a. Suppose that FedEx now issues 4 million shares at $180 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 4 million shares at $180 pe 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)
$ 30
Additional paid-in capital
3,097
23,722
(7,756)
(369)
$ 18,724
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 4 million shares at $180 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 4 million shares at $180 per
share?
Complete this question by entering your answers in the tabs below.
Required A
Required B
What would happen to the book value of common stockholders' equity if instead FedEx bought back 4 million shares at $180
per share?
Note: Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place.
Common shares ($0.10 par value per share)
Additional paid-in capital
Retained earnings
Treasury shares at cost
Other
260
40
Net common equity
$
< Required A
0.0
Required B
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