Question
The balance sheet for Throwing Copper, Inc., is shown here in market value terms. There are 29,000 shares of stock outstanding. Market Value Balance Sheet
The balance sheet for Throwing Copper, Inc., is shown here in market value terms. There are 29,000 shares of stock outstanding.
Market Value Balance Sheet Cash $ 130,000 Fixed assets 529,750 Equity $ 659,750 Total $ 659,750 Total $ 659,750
The compay has announced it is going to repurchase $20,300 worth of stock instead of paying a dividend of $.70. What effect will this transaction have on the equity of the firm? (Input the answer as positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Will shareholders equity by $ How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) New shares outstanding ________?
The balance sheet for Throwing Copper, Inc., is shown here in market value terms. There are 29,000 shares of stock outstanding.
| Market Value Balance Sheet | |||||||
| Cash | $ | 130,000 | |||||
| Fixed assets | 529,750 | Equity | $ | 659,750 | |||
| Total | $ | 659,750 | Total | $ | 659,750 | ||
The compay has announced it is going to repurchase $20,300 worth of stock instead of paying a dividend of $.70. What effect will this transaction have on the equity of the firm? (Input the answer as positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Will shareholders equity by $ How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) New shares outstanding ________?
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
