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Suppose that FedEx now issues 7 million shares at $130 a share. Update the table below with the new values. What would happen to the book value of common stockholders' equity if instead FedEx bought back 7 million shares at $130 per share?

Suppose that FedEx now issues 7 million shares at $130 a share. Update the table below with the new values. What would happen to the book value of common stockholders' equity if instead FedEx bought back 7 million shares at $130 per share?

Essentials Of Investments
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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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: $ 38 3,094 23,719 (7,711) (366) $ 18,774 332 48 a. Suppose that FedEx now issues 7 million shares at $130 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 7 million shares at $130 per share? Complete this question by entering your answers in the tabs below. Required A Required B Suppose that FedEx now issues 7 million shares at $130 a share. Update the table below with the new values. 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) $ 0.7 909.3 Additional paid-in capital Retained earnings 0.0 Treasury shares at cost Other (7,711.0) 0.0 Net common equity $ (6,801.0) < Required A Required B >
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: $ 38 3,094 23,719 (7,711) (366) $ 18,774 332 48 a. Suppose that FedEx now issues 7 million shares at $130 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 7 million shares at $130 per share? Complete this question by entering your answers in the tabs below. Required A Required B Suppose that FedEx now issues 7 million shares at $130 a share. Update the table below with the new values. 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) $ 0.7 909.3 Additional paid-in capital Retained earnings 0.0 Treasury shares at cost Other (7,711.0) 0.0 Net common equity $ (6,801.0) < Required A Required B >
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