FINE 2000 Lecture Notes - Supermajority, Libor, Subordinated Debt

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coffeeduck671

24 May 2012

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Issued shares: shares that have been issued by the company. Outstanding shares: shares that have been issued by the company and are held by investors. Authorized share capital: maximum number of shares that the company is permitted to issue as specified in the firm"s articles of incorporation. Par value: value of security shown on certificate common shares mostly do not have a par value. Addition paid-in capital: difference between issue price and par value of stock, also called capital surplus/contributed surplus/paid-in surplus. Retained earnings: earnings not paid out as dividends. Foreign currency translation adjustments can sometimes translate to losses due to currency conversion. Net common equity= common shares + retained earnings + foreign currency translation adjustment gains. It was an arbitrary set number and almost always lower than the actual sale price of the new shares, but today. Equals the total amount contributed directly by common shareholders when the firm issued new stock, and.

Related Questions

The company with the common equity accounts shown here has declared a 20 percent stock dividend when the market value of its stock is $30 per share.


Common stock ($1 par value)	$	400,000
Capital surplus		849,000
Retained earnings		3,750,800

Total owners' equity	$	4,999,800

What would be the number of shares outstanding, after the distribution of the stock dividend?

New shares outstanding

What would the equity accounts be after the stock dividend?


Common stock	$
Capital surplus
Retained earnings

Total owners' equity	$

amethystprairie-dog590

The ownersâ equity accounts for Alexander International are shown here:


Common stock ($0.50 par value)	$	42,500
Capital surplus		355,000
Retained earnings		778,120

Total ownersâ equity	$	1,175,620

a-1	If Alexander stock currently sells for $20 per share and a 10 percent stock dividend is declared, how many new shares will be distributed?

New shares issued

a-2

Show how the equity accounts would change.


Common stock	$
Capital surplus
Retained earnings

Total ownersâ equity	$

b-1	If instead Alexander declared a 20 percent stock dividend, how many new shares will be distributed?

New shares issued

b-2	Show how the equity accounts would change. (Negative amount should be indicated by a minus sign.)


Common stock	$
Capital surplus
Retained earnings

Total ownersâ equity	$

chocolatecattle336

The authorized share capital of the Alfred Cake Company is 100,000 shares. The equity is currently shown in the companyâs books as follows:

Common stock (3 par value) $ 90,000

Additional paid-in capital 30,000

Retained earnings 50,000

Common equity 170,000

Treasury stock (3,000 shares) 11,000

Net common equity $ 159,000

a. Suppose that the company issues 30,000 shares at $5 a share. Construct the revised equity accounts.

Common stock $ ??

Additional paid-in capital ??

Retained earnings ??

Common equity Treasury stock ??

Net common equity $ ??

b. What would happen to the companyâs books if instead it bought back 3,000 shares at $5 per share? Construct the revised equity accounts.

Common stock $ ??

Additional paid-in capital ??

Retained earnings ??

Common equity Treasury stock ??

Net common equity $ ???

Please help me explain each result

Thanks a lot

FINE 2000 Lecture Notes - Supermajority, Libor, Subordinated Debt

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