Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Book: Financial Statement Analysis, by: K.R. Subramanyam. eleventh edit. page: 209, exercise 3-8 of Campbell Soup company a-d, by using appendix that starts on A47
Book: Financial Statement Analysis, by: K.R. Subramanyam. eleventh edit.
page: 209, exercise 3-8 of Campbell Soup company a-d, by using appendix that starts on A47 in back of book
I want to make sure i'm doing these correct and that i'm using the right numbers.
Appendix A: Campbell Soup Company: A. There are two different reasons why shareholder's equity might increase, increases from capital and increase from earnings. Campbell soup decided to add capital stock in its treasury, from 6.3 million to 8.6 million in year 11, that decision added value in shareholder's equity. The shareholder's value is increased by the issue price of the shares. In addition, a important component to shareholder's equity is the retained earnings. A corporation can raise stockholder's equity by raising the prices on its products, reducing management personnel and imposing a strict operating budget on all its employees. Campbell soup for year 10 has $1,653 in retained earnings and year 11 shows an increase to $1,912 B. Compute the average price at which Treasury shares were repurchased during year 11. Year 11 addition of shares in treasury: 8,618.9 - 6,353.7 = 2265.2 shares Year 11 addition of capital stock in treasury: $270,400,000 - $107,200,000 = $163,200,000 Average price 2265.2 / $163,200,000 = $13.9 C. Compute the book value of common stock at the end of year 11. Assets - liabilities = Book Value shares outstanding balance in Year 11.....127,003.8 Capital stock balance in year 11.....$270,400,000 Book value of common stock at the end of year 11 DStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started