Book value of common stockholders' equity of FedExl, December 31, 2012 (figures in $ millions). Common stock

Question:

Book value of common stockholders' equity of FedExl, December 31, 2012 (figures in $ millions).

Common stock ($.1 par value per share) $ 32

Additional paid-in capital 2,786

Retained earnings 16,900

Treasury shares at cost -4,897

Other 172

Net common equity $14,993

Note: (in millions)

Authorized shares 800

Issued shares, of which: 318

Outstanding shares 276

Treasury shares 42

a. Suppose that FedEx now issues 2 million share at $150 a share. What will be the new account values?

b.What would happen to the book value of common stockholders' equity if instead FedEx bought back 2 million shares at $150 per share?

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...