ch14 - $443 million/8,863 million shares b The shares were...

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1 CHAPTER 14 An Overview of Corporate Financing Answers to Problem Sets 1. a. False b. True c. True 2. a. 40,000/.50 = 80,000 shares b. 78,000 shares c. 2,000 shares are held as Treasury stock d. 20,000 shares e. See table below f. See table below 3. a. 80 votes b. 10 X 80 = 800 votes. 4. a. subordinated b. floating rate
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2 c. convertible d. warrant e. common stock; preferred stock. 5. a. False b. True c. False 6. a. Par value is $0.05 per share, which is computed as follows:
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Unformatted text preview: $443 million/8,863 million shares b. The shares were sold at an average price of: [$443 million + $70,283 million]/8,863 million shares = $7.98 c. The company has repurchased: 8,863 million – 6,746 million = 2,117 million shares d. Average repurchase price: $57,391 million/2,117 million shares = $27.11 per share. e. The value of the net common equity is: $443 million + $70,283 million + $44,148 million – $57,391 million = $57,483 million...
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ch14 - $443 million/8,863 million shares b The shares were...

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