Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Key investor takeaways from the shareholder meeting are as follows: Boeings net income for 2018: $10.46B Boeing issued a 10% stock dividend on December 4.

Key investor takeaways from the shareholder meeting are as follows:

  • Boeing’s net income for 2018: $10.46B
  • Boeing issued a 10% stock dividend on December 4.
  • Market value per share on December 4: $342.50 (close)
  • Boeing executives revealed a plan to build a new $52B factory in South Carolina, opening a third production line for the 787 Dreamliner. Their plans include a $5B bond issue to finance, in part, the new factory. In addition, they announced a cut of 20% in the annual cash dividend from $6.84 to $5.47 per share starting in 2019.
  • Market value per share on December 31: $322.50 (close). Retained earnings as of December 31: $55.94B. Availability of retained earnings for dividends on December 31 is restricted by $50B owing to the planned new 787 factory.
  • Boeing executives explained that the drop in share price at December 31 was due solely to a downturn in the overall market and not to past or projected operating performance

Question is Shareholder 2 (a retiree): “I owned 500 shares of Boeing in 2018 and have not sold any shares. How much of Boeing do I now own at December 31, 2018. What happened to the market value of my financial interest in Boeing?”

My answer is:

Dear shareholders 3,

I am glad to answer your questions, and one of the questions got my attention. Please allow me to discuss more details with you.

It is excellent that you have not sold any shares during 2018. You owned 500 shares of Boeing in 2018. You have not sold any shares yet and your 500 shares in December 2018 as there is no purchase and sale of share you during this period.

The market value of your financial interest in Boeing on December 4th, 2018, is $171,250, and also on December 31st, 2018, is $161,250. Because of the price decrease of the Boeing shares, your value of financial interest declined by $10,000.

Please let me know if you have any other questions. I am more than happy to assist you here.

Thanks

However, the teacher wants to be more detailed and sounds like an investor real email.

Be sure to take into account the perspective and circumstances of the investor, as noted parenthetically, when analyzing the selected questions and preparing your response. Each response must be analytically sound, yet structured in a manner that will prompt a favorable reaction from the investor who posed it. Limit your response to a length appropriate for an email message back to the investor.

Is anyone could give me a little more detail or advice? Really appreciate your time.

Step by Step Solution

3.44 Rating (151 Votes )

There are 3 Steps involved in it

Step: 1

Answer Part 1 Since you owned 500 shares of Boeing in 2018 and have not sold any shares you have 500 ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

South-Western Federal Taxation 2019 Comprehensive

Authors: David M. Maloney, William A. Raabe, William H. Hoffman, James C. Young

42th Edition

1337702544, 978-1337702546, 133770301X, 978-1337703017

More Books

Students also viewed these Accounting questions

Question

Difference between truncate & delete

Answered: 1 week ago