On its year end balance sheet, Wells Inc. reports treasury stock at cost of $5,181 million. The company has a total of 1,172,513,618 shares issued and 1,082,986,591 shares outstanding. What average price did Walgreen pay for treasury shares?

Select one:

a. None of these are correct

b. $57.87

c. $4.78

d. $2.30

e. $4.42

2)

Which one of the following would be considered a contingent liability?

Select one:

A. A company estimates that it will probably have to pay $75,000 to the EPA for a chemical spill.

B. A company owes $35,000 on inventories purchased on credit.

C. A company has access to a line of credit with a bank in the amount of $120,000.

D. A company believes that it is reasonably possible it will lose a lawsuit and damages could be $100,000.

E. None of the above

3)

Nova Components is a manufacturer of computer parts. The company recently reported earnings of $2,901,314. In addition, Nova Components has 402,500 shares issued and outstanding. The company has a PE ratio of 24.6. Nova Components is part of the computer parts industry which has an industry PE ratio of 25.6. Using industry information, estimate the intrinsic value of Nova Components equity per share?

Select one:

a. $32.81

b. $184.53

c. $177.32

d. $7.50

4)

Which of the following is not a correct statement about noncontrolling interest?

Select one:

A. Noncontrolling interests are entitled to preference in dividends and payouts in liquidation.

B. Noncontrolling interest represents their claim to their proportionate share of the net assets and net income of the subsidiary in which they own stock.

C. Noncontrolling interest is a residual claim, like that of any other shareholder.

D. Noncontrolling interest is reported as a component of stockholders' equity on the balance sheet.