Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rush Consulting, Inc. (Rush) is a New York corporation that was formed in January 2015. The Rush certificate of incorporation authorizes the issuance of 10,000,000

image text in transcribed
image text in transcribed
image text in transcribed
Rush Consulting, Inc. ("Rush") is a New York corporation that was formed in January 2015. The Rush certificate of incorporation authorizes the issuance of 10,000,000 shares of $.01 par value common stock, 1,000,000 shares of cumulative $5 no-par preferred stock, and 2,000,000 shares of $100 par value 10% non-cumulative preferred stock. The Rush certificate of incorporation provides for preemptive rights for common stockholders. It is now June 2020, and Rush has the following shareholders: Geddy owns 3 million shares, Alex owns 2 million shares and Neil owns 1 million shares. There are no other shareholders. Rush also has 500,000 shares of treasury stock. This test allows multiple attempts. QUESTION 18 How many shares of Rush common stock have been issued? QUESTION 19 How many shares of Rush common stock are authorized but unissued? QUESTION 20 How many shares of Rush common stock are outstanding? QUESTION 21 Assume that there is no treasury stock. Rush offers 1 million shares of the unissued common stock to Tull for $70 per share. How many of this 1 million shares is Geddy entitled to purchase before Tull can make the purchase? 500,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

More Books

Students also viewed these Accounting questions