Since the company wants to receive $80,000 when it issues the 10,000 shares, it must receive $8 per share for the shares. 10,000 shares x market price per share = $80,000 cash. Market price per share = $80,000 cash / 10,000 shares = $8 per share. See text exercise 12.2 for similar material.
How much common stock does the tenth corporation have?
The Tenth Corporation had 1,000,000 authorized shares of $.05 common stock on October 10. 400,000 shares of the stock were outstanding on October 10. On October 10, the Tenth Corporation declared common stock cash dividends of $.50 per share.
How many shares does the fourth Corporation own?
Since the Fourth Corporation owns 20,000 shares out of a total of 2,000,000 shares, the Fourth Corporation owns 1% of the Lowell Corporation. 20,000 shares owned by the Fourth Corporation / 2,000,000 Lowell Corporation shares outstanding = .01 or 1%. See text exercise 12.4 for similar material.
What is the carrying value of DeWeese Corporation bonds?
If the Bonds Payable account has a balance of $900,000 and the Discount on Bonds Payable account has a balance of $120,000, what is the carrying value of the bonds? DeWeese Corporation issues $400,000 of 8%, 5-year bonds on January 1, 2019, at 105.
What happens if you own 200 shares of stock?
The owner of 200 shares of stock would receive 1% (200 / 20,000 = .01) of the assets remaining after the company paid its creditors. In this case, the owner of 200 shares would receive 1% of $5,000, which is $50.
How many shares of common stock can a second Corporation issue?
2. The Second Corporation is authorized to issue a total of 10,000 shares of $.10 par value common stock. Calculate the price per share the corporation must receive in order to raise $80,000 by issuing 10,000 common shares to the public.
How to calculate the total amount of cash a company would receive when issuing stock?
Calculate the total cash the First Corporation would receive if it issues 1,000 shares of $.02 par value per share common stock at a $9 market price per share. The key to this problem is to recognize that the cash a company receives when it issues stock is based on the number of share issued and the market price per share.
