1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kazeer [188]
3 years ago
3

A firm has a market value equal to its book value. Currently, the firm has excess cash of $1,360 and other assets of $6,640. Equ

ity is worth $8,000. The firm has 500 shares of stock outstanding. The firm has decided to spend all of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?
Business
1 answer:
blagie [28]3 years ago
5 0

Answer:

Share Outstanding after stock repurchase = 415 Shares

Explanation:

given data

cash = $1,360

other assets = $6,640

Equity = $8,000

stock outstanding = 500 shares

to find out

How many shares of stock will be outstanding after the stock repurchase is completed

solution

first we find the book value per share

Book value per share = Value of Common Equity ÷ Total Shares Outstanding       ..............................1

put here value

Book value per share = \frac{8000}{500}

Book value per share = $16

so

Share can purchased with the excess cash = \frac{1360}{16}

Share can purchased with the excess cash = 85 shares

so Share Outstanding after stock repurchase = 500 - 85

Share Outstanding after stock repurchase = 415 Shares

You might be interested in
The periodic expensing of an asset over the property's theoretical economic life is referred to as what
Charra [1.4K]

The periodic expensing of an asset over the property’s theoretic economic life is known as the depreciation. Depreciation occurs when there is a presence of the utility’s loss and in the same time, there is a physical deterioration or economical obsolesce that causes a value or that both may occur in the same time.

8 0
3 years ago
A merit rating system for SUTA means        A. FUTA will increase.   B. state rates will always be lower.   C. rate varies with
grin007 [14]

Answer

C. Rate varies with employment record.

Explanation

SUTA  is a merit rating system which gives scores to employers according to their employee turnover and stability of jobs offered. This score  can be utilized by the government during levying for unemployment taxes on recruiters/job givers. A firm that has low ratings pay lower unemployment taxes.The  rate is different in every company due to different employment records where some companies have high employment turnover where others  are not stable in their employment chances.


3 0
3 years ago
Please help me with personal finance!!! NO LINKS!!!
nikklg [1K]

Answer:

I can't post the link i found to answer the question so if u look this up u will find the answer

Explanation:

8 0
3 years ago
has acquired several other companies. Assume that Patton purchased Kate for $ 6 comma 000 comma 000 cash. The book value of Kate
svlad2 [7]

Answer and Explanation:

1. The amount of goodwill is shown below:

= Purchase price - the market value of net assets

= $6,000,000 - ($17,000,000 + $13,000,000)

= $2,000,000

2. Now the journal entry for purchase is

Assets $17,000,000

Goodwill $2,000,000

      To Liabilities $13,000,000

      To Cash $6,000,000

(Being the purchase is recorded)

For recording this we debited the assets and goodwill as it increased the assets and credited the liabilities and cash as it also increased the liabilities and decreased the assets

5 0
3 years ago
Trusper Company was organized on January 1, Year 1 and has had 1,000 shares of $200 par value, 10% cumulative preferred stock ou
Masja [62]

Answer:

Trusper Company

The total amount of dividends that will be paid to common stockholders during Year 2 is:

$40,000.

Explanation:

a) Data and Calculations:

10% cumulative preferred stock = $200,000 ($200 * 1,000)

Common stock = $3,000 (3,000 * $1)

Dividends in Year 1 for cumulative preferred stockholders = $20,000 ($200,000 * 10%)

Dividends outstanding after Year 1 for cumulative preferred stockholders = $15,000 ($20,000 - $5,000)

Dividends for Year 2 for cumulative preferred stockholders = $35,000 ($20,000 + $15,000).

Total dividend paid to common stockholders during Year 2 = $40,000 ($75,000 - $35,000)

b) The unpaid cumulative preferred stock dividend of $15,000 for Year 1 will be added to the dividend of the Year 2.  The common stockholders are not paid any dividends in Year 1.  But in Year 2, they will get $40,000 after the cumulative preferred stock dividends are paid.

3 0
3 years ago
Other questions:
  • The Rodriguez family is determined to purchase a $250,000 home without incurring any debt. The family plans to save $2,500 a qua
    12·1 answer
  • Monica graduated from high school this year and has a steady job. She feels ready to move into her own space and has $1,200 in s
    11·2 answers
  • A​ zero-coupon bond can be redeemed in 20 years for $ 10 comma 000.$10,000. how much should you be willing to pay for it now if
    8·1 answer
  • Overhead expenses are budgeted at $2,000 per month. Included in the $2,000 are $500 of monthly depreciation expense and $200 of
    11·1 answer
  • Technology can be helpful and increase learning in the classroom true or false
    12·1 answer
  • When a firm issues 50,000 shares with a par value of $5 for $22 per share, additional paid-in capital will:
    9·1 answer
  • Amount 11,000 17 Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense p
    12·1 answer
  • Inflation is measured by a nation's Gross Domestic Product number.<br><br> True<br><br> False
    6·2 answers
  • As project manager, Gabriella has discovered a major problem that could affect the remainder of the project.
    5·1 answer
  • Though managers commonly deal with negative individual behaviors, which behavior is more rare and more serious to address
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!