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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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.
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Problem 1 Burlington Corp. has a single class of shares. At its year end December 31, 2020, the company had 5,000,000 ordinary shares issued and outstanding. On the stock exchange, these shares were trading at around $7. In the company's accounts, these shares had a value of $50,000,000. The equity accounts also show $650,000 of contributed surplus from previous repurchases of shares as well as $30.000,000 of Retained Earnings. On January 15, 2021, Burlington repurchased and cancelled 250,000 shares at a cost of $7 per share. On August 20, 2021 the company repurchased and cancelled a further 475,000 shares at a cost of $14 per share. Required: Record the journal entries for the two share transactions in 2021.
Question 10 On January 1, 20B, Nathalie company had 150,000 ordinary shares outstanding. During the current year, the following events occurred: March 1, 2-for-1 share split; June 1, issued 45,000 additional shares; September 1, 20% share dividend. What is the weighted average number of shares outstanding for the year? CHOICES: 414,000 391,500 345,000 384,000
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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Problem 4 (Allocation of Cash Dividends to Preference and Ordinary Shareholders) The Company has the same capital structure (except for retained earnings) for the past five year, see details below: 6% Preference Share Capital, 80,000 shares issued and outstanding, P 50 par P4,000,000 Ordinary Share Capital, 200,000 shares issued and outstanding, P 30 par 6,000,000 Retained Earnings 5,000,000 No dividends were paid prior to 2020 for two years. On December 10, 2020, the Company declared P 1,500,000 as cash dividends to shareholders of record of December 21, 2020, payable on January 5, 2021. Requirements: Prepare all the necessary journal entries to record the dividend transactions. Allocate the dividends between ordinary shareholders and preference shareholders if: Case A. Preference share capital is NON-CUMULATIVE and…
PROBLEM 12-3B The following selected accounts appear in the ledger of Kingfisher Environmental Corporation on March 1, 2006, the beginning of the current fiscal year: Selected stock transactions Objectives 4, 5, 7 Preferred 2% Stock, $75 par (10,000 shares authorized, 8,000 shares issued) Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $10 par (50,000 shares authorized, 35,000 shares issued) Paid-In Capital in Excess of Par-Common Stock . Retained Earnings $ 600,000 ..... 100,000 RAS.S. 350,000 85,000 1,050,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Issued 7,500 shares of common stock at $24, receiving cash. b. Sold 800 shares of preferred 2% stock at $81. c. Purchased 3,000 shares of treasury common for $66,000. d. Sold 1,800 shares of treasury common for $50,400. e. Sold 750 shares of treasury common for $14,250. f. Declared cash dividends of $1.50 per share on preferred…
QUESTION 20 The shareholders' equity section of Jason Company as of December 31, 2017, was as follows: Common stock $180,000 Additional paid-in capital (Common stock) 110,000 Retained earnings 160,000 Total shareholders' equity $450,000 . On January 15, the company repurchased 1,500 shares of its own common stock at $60 to hold as treasury stock. Which of the following would be included in the journal entry recorded on January 15? A credit to Retained Earnings for $90,000 A debit to Cash for $90,000 A debit to Treasury Stock for $90,000 A debit to Common Stock for $90,000 None of these choices is correct.

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