Question
Nicole has been financing Nicoles Getaway Spa (NGS) using equity financing. Currently NGS has authorized 100,000 no-par preferred shares and 200,000 $2 par common shares.
Nicole has been financing Nicoles Getaway Spa (NGS) using equity financing. Currently NGS has authorized 100,000 no-par preferred shares and 200,000 $2 par common shares. Outstanding shares include 51,000 preferred shares and 41,000 common shares.
Recently the following transactions have taken place.
a. | NGS issues 1,050 preferred shares for $11 a share. |
b. | NGS repurchases 1,050 common shares for $10 a share. |
c. | On November 12, the board of directors declares a $0.20 cash dividend on each outstanding preferred share. |
d. | The dividend is paid December 20. |
3. | Show the overall effect of each transaction on the assets, liabilities, and shareholders equity of the company. (Use + for increase, for decrease.) (Leave cell blank if there is no effect |
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+ +11,550
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