Mgmt_200_Spring_2008_Chap_11_Stockholders'_Equity(3,25)

Mgmt_200_Spring_2008_Chap_11_Stockholders'_Equity(3,25) -...

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Stockholders’ Equity Corporate form of organization Benefits of Corporations Access to large amounts of capital Limited liability Liquidity Risk sharing Sources of stockholders’ equity Contributed capital Retained earnings
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Contributed Capital Authorized shares Issued shares Treasury stock Outstanding shares Voting rights, dividend rights Market Capitalization Shares outstanding x share price Earnings per share Net income / Average common shares outstanding
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E11-1: Computing Shares Outstanding The annual report for Altria Group, Inc., disclosed that 4 billion shares of common stock have been authorized. At the end of last year, 2,805,961,317 shares had been issued and the number of shares in treasury stock was 380,474,028. During the current year, no additional shares were issued, but additional shares were purchased for treasury stock and shares were sold from treasury stock. The net change was a decrease of 5,047,286 shares of treasury stock. Determine the number of shares outstanding at the end of the current year.
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Issuing common shares Par value Initial Public Offering (IPO) Cash 25,000,000 Common stock 100,000 Capital in excess of par 24,900,000 Issue of 1,000,000 shares, $0.10 par value, at $25 per share.
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Treasury Stock Transactions Repurchase of shares: Treasury shares, at cost 800,000 Cash 800,000 Repurchase of 20,000 shares at $40 per share. Reissue of treasury shares: Cash 50,000 Capital in excess of par 10,000 Treasury shares, at cost 40,000 Reissue of 1,000 shares at $50 per share.
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E11-6: Finding Amounts Missing from the Stockholders’ Equity Section The stockholders’ equity section on the December 31, 2006, balance sheet of Garland Turkey Processors Corporation follows: Required: Complete the following statements and show your computations. 1. The number of shares of common stock issued was ______.
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This note was uploaded on 11/22/2009 for the course MGMT 200 taught by Professor Greigg during the Spring '08 term at Purdue University-West Lafayette.

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Mgmt_200_Spring_2008_Chap_11_Stockholders'_Equity(3,25) -...

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