Horton Industries shareholders equity included 260 million shares of $1 par common stock and a balance in paid-in capital-excess of par 2,600 million. Assuming that Horton retires it reacquires(restores their status to that of authorized but unissued shares), by what amount will Horton's total paid-in capital decline if it reacquires 5 million shares at 9.00 per share? total paid-in capital will decline by?

Horton Industries shareholders equity included 260 million shares of $1 par common stock and a balance in paid-in capital-excess of par 2,600 million. Assuming that Horton retires it reacquires(restores their status to that of authorized but unissued shares), by what amount will Horton's total paid-in capital decline if it reacquires 5 million shares at 9.00 per share? total paid-in capital will decline by?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 9MC

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Question

Horton Industries shareholders equity included 260 million shares of $1 par common stock and a balance in paid-in capital-excess of par 2,600 million.

Assuming that Horton retires it reacquires(restores their status to that of authorized but unissued shares), by what amount will Horton's total paid-in capital decline if it reacquires 5 million shares at 9.00 per share?

total paid-in capital will decline by?

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