Mgmt_200_Spring_2008_Chap_11_Stockholders'_Equity(4,3)

Mgmt_200_Spring_2008_Chap_11_Stockholders'_Equity(4,3) -...

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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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E11-2: Computing Number of Shares The charter of Mansfield Corporation specifies that it may issue 250,000 shares of common stock. Since the company was incorporated, it has sold a total of 200,000 shares to the public but bought back a total of 20,000. The par value of the stock is $1 and the stock was sold at an average price of $20. When the stock was bought back from the public, the market price was $22. Required: 1. Determine the authorized shares. 2. Determined the issued shares. 3. Determine the outstanding shares.
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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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Mgmt_200_Spring_2008_Chap_11_Stockholders'_Equity(4,3) -...

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