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These acoodint balances at December 31 relate to SportTurget ine: If the board of directors declare a dividend of 526,000 on December A. $8.800 B. 517,200 C. $26.000 D. $97 These account balances at December 31 relate to Sportworld Inc.: What is total shareholders' equity for Sportworld Inc.? A. $762,800 B. $749,800 C. $761,235 D. $754,800 E. None of the above Karen Knox Exporta, Ine, is a public company locoted in Clancy, New Mexico. The Knox famly stall owns a third of the outstanding voting sharos. Knox is the only company with reliable sourcens for its imperted offs. The compary doos a brisk business with speciaty stores such as Neiman Marcus. Knox's recent success has made the company a prime tarpot for a taknownr An investment group is attempting to buy 52 percent of Knox's outstanding shares against the wishes of Knox's board of drectors. Board members are corwinced that the investors would sell the most desirabla pieces of the business and leave little of value. At the most recent board meeting, several suggestions were advanced to fight of the hostle takeever bid. The suggeston with the most promise is to repurchase a signilicant quanaty of outstariding Shares. Knou has the cash to carry cut this plan: Required Suppose you are a significant shareholder of Karen Knox Exports, Inc. Complete the memonandum to explain to the board how the repurchase of shares would make at difficult for the investor group to take over Knox. Inctude a discussion of the effect that repurchasing stares would have on shares cutstanding and on the size of the corporation. To: Karen Knox Exports, inc, Board of Directors Re: How the repurchase of shares would make it ditficuit for the investor group to take over Knox. Purchasing shares If Karen Knox Exponts repurchases a significant quantly of shares, outsiders, such as the investor group, acquire a controling irterest ( 50+ percent) of the outstanding shares from the remaining shareholders. Because it takes cash to repurchase shares, the purchase the size of the corporation. Reducing the compary's cash position may make the compary suticiently unallractive to cause the outside investors to abandon their takeover plan