Answer:
17 million
Explanation:
The computation of the outstanding common shares is shown below:
= Number of common shares outstanding - treasury common stock
where,
Number of common shares outstanding = Total value of the common shares ÷ par value of the share
= $105 million ÷ $5
= 21 million
And, the treasury common stock is 4 million
Now put these values to the above formula
So, the value would equal to
= 21 million - 4 million
= 17 million
Answer:
The correct answer to the following question is option E) 9.06% .
Explanation:
Here the cost of equity given is - 11.8%
Pre tax cost of debt- 6.9%
Tax rate- 35%
So the after tax cost of debt - 6.9% x 65%
= 4.485%
The debt to equity ratio - .6
So the weight of debt - .6 / ( 1 + .06 )
= .375
Weight of equity - 1 / ( 1 + .06 )
= .625
Weighted average cost of capital =
Debts cost x weight of debt + Equity cost x weight of equity
= 4.485 x .375 + 11.8 x .625
= 1.681875 + 7.735
= 9.06%
Answer:
Offering circular
Explanation:
An offering circular is a formal written offer to sell securities that sets forth the fact for a business enterprise that a prospective investor needs to make an informed investment decision. It usually contain financial information, a description of the security being offered, risk factors, uses of offering proceeds, business and organization of the company and other pertinent information.
Answer:
A. Monitoring customer trends in the industry and of consumers as a whole
Explanation:
Answer:
(a) 4,000,000
(b) 3,200,000
(c) 3,170,000
(d) $3,200,000
(e) $750,000
Explanation:
(a) Number of shares authorized = 4,000,000
(b) Number of shares issued = 3,200,000
(c) Number of shares outstanding:
= Number of shares issued - Acquired shares as treasury stock
= 3,200,000 - 30,000
= 3,170,000
(d) Balance of the Common Stock account:
= Number of shares issued × Par value
= 3,200,000 × $1
= $3,200,000
(e) Balance of the Treasury Stock account:
= Acquired shares as treasury stock × Price per share
= 30,000 × $25
= $750,000
