Problem 19-6 Share RepurchaseThe balance sheet for Quinn Corporation is shown here in market value terms. There are5,000 shares of stock outstanding.Market Value Balance SheetCashFixed assetsTotal$44,700 Equity $454,700410,000$ 454,700 Total $454,700Instead of a dividend of $1.60 per share, the company has announced a sharerepurchase of $8,000 worth of stock.How many shares will be outstanding after the repurchase? (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g., 32.16.)What will the price per share be after the repurchase? (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g., 32.16.)Shares outstandingNew stock price

Shares repurchase refers to the buying back own shares from the market which were previously sold to…

Answered: Problem 19-6 Share Repurchase The…

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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Exercise 10-5B Record common stock, preferred stock, and dividend transactions (LO10-2, 10-3, 10-5) A company has the following transactions during the year related to stockholders’ equity. February 1 Issues 4,200 shares of no-par common stock for $15 per share. May 15 Issues 200 shares of $10 par value, 3.5% preferred stock for $12 per share. October 1 Declares a cash dividend of $0.35 per share to all stockholders of record (both common and preferred) on October 15. October 15 Date of record. October 31 Pays the cash dividend declared on October 1. Required: Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 1-Record the issuance of 4,200 shares of no-par common stock for $15 per share. 2-Record the issuance of 200 shares of $10 par value preferred stock for $12 per share. 3-Record the declaration of a cash dividend of $0.35 per share to…
Problem 15-06 Sheffield Company has the following stockholders’ equity accounts at December 31, 2020. Common Stock ($100 par value, authorized 8,700 shares) $502,800 Retained Earnings 277,400 Prepare entries in journal form to record the following transactions, which took place during 2021 (1) 260 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost method.) (2) A $20 per share cash dividend was declared. (3) The dividend declared in (2) above was paid. (4) The treasury shares purchased in (1) above were resold at $103 per share. (5) 480 shares of outstanding stock were purchased at $106 per share. (6) 370 of the shares purchased in (5) above were resold at $96 per share.
Problem 10-04 Firm A had the following selected items on its balance sheet: Cash $ 27,000,000 Common stock ($40 par; 2,000,000 shares outstanding) 80,000,000 Additional paid-in capital 12,000,000 Retained earnings 64,000,000 How would each of these accounts appear after: a cash dividend of $1.5 per share? Round the number of shares outstanding to the nearest whole number and the other answers to the nearest dollar. a 7 percent stock dividend (fair market value is $80 per share)? Use the original balance sheet from the problem statement. Round the number of shares outstanding to the nearest whole number and the other answers to the nearest dollar. a one-for-two reverse split? Use the original balance sheet from the problem statement. Round the number of shares outstanding to the nearest whole number and the other answers to the nearest dollar.
5 ok t Exercise 11-12A (Algo) Treasury stock transactions LO 11-5 Elroy Corporation repurchased 3,400 shares of its own stock for $35 per share. The stock has a par of $15 per share. A month later, Elroy resold 850 shares of the treasury stock for $43 per share. Required What is the balance of the Treasury Stock account after these transactions? Balance of treasury stock Next
View Policies Current Attempt in Progress On January 1, Swifty Corporation had 71000 shares of $10 par value common stock outstanding. On June 17, the company declared a 15% stock dividend to stockholders of record on June 20. Market value of the stock was $14 on June 17. The stock was distributed on June 30. The entry to record the transaction of June 30 would include a O debit to Common Stock Dividends Distributable for $149100. O debit to Stock Dividends for $42600. O credit to Paid-in Capital in Excess of Par for $42600. O credit to Common Stock for $106500. Save for Later Attempts: 0 of 1 used Submit Answer
QUESTION 6 Emma Systems, Inc. declared and issued a 9 percent stock dividend. The company has 720,000 shares authorized and 45,668 outstanding. The par value of the stock is $1.4 per share and the market value is $6 per share. To record the stock dividend, the debit to Retained Earnings would be S
19-Company X’ currently has 80,000 shares outstanding that are trading at OMR 8.400 per share. The company decides to declare 5% stock dividend. How many additional shares should be issued to distribute stock dividend and how much will be the issue price per share? a. 5,000 shares;OMR 8 per share b. 4,000 shares;OMR 8.400 per share c. 4,000 shares; OMR 8 per share d. 8,000 shares; OMR 8.400 per share Clear my choice
QUESTION 8 Kaldi Company has 20.000 shares of $10 par value, 5% cumulative preferred stock and 200,000 shares of $20 par value common stock outstanding. The company paid total cash dividends of $8,000 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is: OA S10.000. O B. $12,000. OC. $8.000. O D. $2.000.
Exercise 16-20 Your answer is partially correct. Try again. On January 1, 2020, Crane Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,800 shares $980,000 Common stock, $10 par value, issued and outstanding 206,000 shares 2,060,000 To acquire the net assets of three smaller companies, Crane authorized the issuance of an additional 158,400 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2020 48,000 Company B July 1, 2020 80,400 Company C October 1, 2020 30,000 On May 14, 2020, Crane realized a $88,800 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Crane recorded income of $274,800 from continuing operations (after tax).Assuming a 25% tax rate, compute the earnings per share data that should appear on the financial statements of Crane Industries as of December 31, 2020.…
Question 8 Your Corporation had 50,000 shares of $3 par value common stock authorized, 30,000 shares issued and 20,000 shares outstanding, when the board of directors declared a cash dividend of $1.50 per share. What is the dollar amount of the cash dividend? $90,000 $45,000 $30,000 $28,000 $60,000
Problem 5 The owners' equity accounts for Alexander International are shown here: $ 40,000 335,000 Common stock ($0.50 par value) Capital surplus Retained earnings Total owners' equity 738,120 $1,113,120 a If Alexander stock currently sells for $25 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.
Problem 17-5 How Corporations Pay Dividends (LO1) The stock of Payout Corporation will go ex-dividend tomorrow. The dividend will be $0.40 per share, and there are 15,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Ignore taxes. Assets Cash Fixed assets $ 280,000 1,070,000 a. Price b. Price Liabilities and Equity Equity $ 1,350,000 a. What price is Payout stock selling for today? b. What price will it sell for tomorrow? Note - For all requirements, round your answer to 2 decimal places.

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