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Corporate Finance & Venture Capital/Securities Formulas 19Q

Corporate Finance & Venture Capital/Securities Formulas 19Q

Corporate Finance 10Q:

1. The authorized share capital of the Alfred Cake Company is 110,000 shares. The equity is currently shown in the company’s books as follows:

Common stock ($2 par value) $ 79,000
Additional paid-in capital 29,000
Retained earnings 49,000

Common equity $ 157,000
Treasury stock (4,000 shares) 23,000

Net common equity $ 134,000
a. How many shares are issued?
Number of shares issued
b. How many shares are outstanding?
Outstanding shares
c. How many more shares can be issued without the approval of shareholders?
Number of shares issued

2.

Common Products has just made its first issue of stock. It raised $1.3 million by selling 250,000 shares of stock to the public. These are the only shares outstanding. The par value of each share was $2. Complete the following table:

Common stock (par value) $
Additional paid-in capital $
Retained earnings $

Net common equity $ 1,800,000

3.

If there are 10 directors to be e

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