Enscoe Enterprises, Inc. (EEI) has 300,000 shares authorized, 240,000 shares issued, and 50,000 shares of treasury...
Enscoe Enterprises, Inc. (EEI) has 300,000 shares authorized,
240,000 shares issued, and 50,000 shares of treasury stock. At this
point, EEI has $1,880,000 of assets. $170,000 liabilities, $580,000
of common stock, and $1,130,000 of retained earnings. Further,
assume that the market value of EEI's common stock is $11 per
share.
Required
a. Determine the number of shares of stock that is
outstanding.
b. Determine the book value per share.
c. Provide a rational explanation for the
difference between the book value per share and the market value
per share of EEIs' common stock.
Homework Answers
Answer a.
Shares outstanding = Shares issued - Shares reacquired
Shares outstanding = 240,000 - 50,000
Shares outstanding = 190,000
Answer b.
Book value per share = (Common stock + Retained earnings) /
Shares outstanding
Book value per share = ($580,000 + $1,130,000) / 190,000
Book value per share = $9.00
Answer c.
Book value per share shows historical value of equity whereas market value per share shows current value of equity.
Add Answer to:
Enscoe Enterprises, Inc. (EEI) has 300,000 shares authorized,
240,000 shares issued, and 50,000 shares of treasury...
Enscoe Enterprises, Inc. (EEI) has 300,000 shares authorized, 240,000 shares issued, and 50,000 shares of treasury...
Enscoe Enterprises, Inc. (EEI) has 300,000 shares authorized, 240,000 shares issued, and 50,000 shares of treasury stock. At this point, EEI has $2,030,000 of assets. $130,000 liabilities, $580,000 of common stock, and $1,320,000 of retained earnings. Further, assume that the market value of EEl's common stock is $12 per share. Required a. Determine the number of shares of stock that is outstanding. b. Determine the book value per share. c. Provide a rational explanation for the difference between the book...
Erie Company has 300,000 shares of authorized and issued common stock, $2 par. Additional paid in...
Erie Company has 300,000 shares of authorized and issued common stock, $2 par. Additional paid in capital for these shares amounts to $3,000,000. Record the following events: Dr. Cr. Mar 1, Purchased 15,000 shares of stock as treasury stock at $8 per share. Apr 1, Resold 1,000 shares of treasury stock into the market at $12 per share. May 1, Issued 5,000 treasury shares to employees at $7 per share, as part of an ESOP. That is, there is...
Netpass Company has 300,000 shares of common stock authorized, 270,000 shares issued, and 100,000 shares of...
Netpass Company has 300,000 shares of common stock authorized, 270,000 shares issued, and 100,000 shares of treasury stock. The company's board of directors declares a dividend of $1 per share of common stock. What is the total amount of the dividend that will be paid? Dividend Amount to be Paid $ 77.000
8% Preferred Stock, $100 par value, cumulative, 50,000 shares authorized 30,000 shares issued and outstanding 3,000,000...
8% Preferred Stock, $100 par value, cumulative, 50,000 shares authorized 30,000 shares issued and outstanding 3,000,000 In excess of par on preferred stock $ 300,000 Total Paid-in-Capital from Preferred Stock $ 3,300,000 Common Stock, no par, $25 stated value, 1,000,000 shares authorized. 400,000 shares issued and outstanding $ 10,000,000 In excess of stated value on common stock $ 600,000 Total Paid-in-Capital from Common Stock $ 10,600,000 Total Paid-in-Capital $ 13,900,000 Retained Earnings (Note A) $ 4,100,000 Total Stockholder's Equity $...
2. (15 pts) Erie Company has 300,000 shares of authorized and issued common stock, $2 par....
2. (15 pts) Erie Company has 300,000 shares of authorized and issued common stock, $2 par. Additional paid in capital for these shares amounts to $3,000,000. Record the following events: Dr. Mar 1, Purchased 15,000 shares of stock as treasury stock at $8 per share. Apr 1, Resold 1,000 shares of treasury stock into the market at $12 per share. May 1, Issued 5,000 treasury shares to employees at $7 per share, as part of an ESOP. That is, there...
Stockholder's Equity Pald-in-Capital B%. Preferred Stock, $100 par value, cumulative, 50.000 shares Authorized, 50,000 shares issued...
Stockholder's Equity Pald-in-Capital B%. Preferred Stock, $100 par value, cumulative, 50.000 shares Authorized, 50,000 shares issued and outstanding In excess of per on preferred stock Total Paid-in-Capital from Preferred Stock $ 5.000.000 $ 5,300,000 $ $ 7.500.000 200.000 Common Stock, no par, $25 stated value, 1,000,000 shares authorized, 300,000 shares issued and outstanding In excess of stated value on common stock Total Paid-in-Capital from Common Stock Total Paid-in-Capital Retnined Earnings (Note A) Total Stockholder's Equity $ $ $ $ 100,000...
Contributed Capital: Common Stock - $4 par value, 5,000,000 shares authorized, 300,000 shares issued and outstanding...
Contributed Capital: Common Stock - $4 par value, 5,000,000 shares authorized, 300,000 shares issued and outstanding Paid capital in Excess of Par, Common Retained Earnings Total Stockholders' Equity $1,200,000 1.600.000 2.000.000 $4,800,000 The following transactions occurred in sequence during 2019: a. Issued 40,000 shares of $100 par value, 10% cumulative preferred stock at par, b. Declared a 2 per 1 stock split on outstanding common shares. c. Bought land valued at $980,000 by using 100,000 shares of common stock. d....
4. ABC Company has 180,000 shares of common stock authorized and 50,000 shares issued and outstanding. The common stock...
4. ABC Company has 180,000 shares of common stock authorized and 50,000 shares issued and outstanding. The common stock has a $1.50 Par value and a market value of $27 per share on October 10, 2016. On October 10, 2016, ABC declares and pays a 22% stock dividend to shareholders. Record all necessary journal entries. a. Assuming this is considered a SMALL Stock Dividend, record all necessary journal entries Credit Debit Accounts Date b. Assuming this is considered a LARGE...
$5 Par Common $10 Par Preferred Additional paid-in capital $2,250,000 $50,000 Shares: Authorized 750,000 40,000 Issued...
$5 Par Common $10 Par Preferred Additional paid-in capital $2,250,000 $50,000 Shares: Authorized 750,000 40,000 Issued 300,000 8,000 Outstanding 250,000 8,000 Retained earnings is $1,837,000, and the cost of treasury shares is $1,200,000. Required: Prepare the stockholders' equity portion of Renee's balance sheet. Accounts, Labels and Amount Descriptions Accounts Common stock Common stock, $5 par, 750,000 shares authorized, 300,000 shares issued, and 250,000 shares outstanding Preferred stock Preferred stock, $10 par, 40,000 shares authorized, 8,000 shares issued and outstanding Retained...
Dorado Company is authorized to issue 1,000,000 shares of common stock. They issued 400,000 shares of...
Dorado Company is authorized to issue 1,000,000 shares of common stock. They issued 400,000 shares of $5 par value stock for $18 per share. They repurchased 100,000 shares at $20 per share and reissued 20,000 of the Treasury shares at $22 per share. Assuming no shares were retired, what is the number of shares outstanding? a. 300,000 shares b. Cannot be determined based on the information given c. 900,000 shares d. 380,000 shares e. 320,000 shares
Enscoe Enterprises, Inc. (EEI) has 300,000 shares authorized, 240,000 shares issued, and 50,000 shares of treasury stock. At this point, EEI has $2,030,000 of assets. $130,000 liabilities, $580,000 of common stock, and $1,320,000 of retained earnings. Further, assume that the market value of EEl's common stock is $12 per share. Required a. Determine the number of shares of stock that is outstanding. b. Determine the book value per share. c. Provide a rational explanation for the difference between the book...
Netpass Company has 300,000 shares of common stock authorized, 270,000 shares issued, and 100,000 shares of treasury stock. The company's board of directors declares a dividend of $1 per share of common stock. What is the total amount of the dividend that will be paid? Dividend Amount to be Paid $ 77.000
8% Preferred Stock, $100 par value, cumulative, 50,000 shares authorized 30,000 shares issued and outstanding 3,000,000 In excess of par on preferred stock $ 300,000 Total Paid-in-Capital from Preferred Stock $ 3,300,000 Common Stock, no par, $25 stated value, 1,000,000 shares authorized. 400,000 shares issued and outstanding $ 10,000,000 In excess of stated value on common stock $ 600,000 Total Paid-in-Capital from Common Stock $ 10,600,000 Total Paid-in-Capital $ 13,900,000 Retained Earnings (Note A) $ 4,100,000 Total Stockholder's Equity $...
2. (15 pts) Erie Company has 300,000 shares of authorized and issued common stock, $2 par. Additional paid in capital for these shares amounts to $3,000,000. Record the following events: Dr. Mar 1, Purchased 15,000 shares of stock as treasury stock at $8 per share. Apr 1, Resold 1,000 shares of treasury stock into the market at $12 per share. May 1, Issued 5,000 treasury shares to employees at $7 per share, as part of an ESOP. That is, there...
Stockholder's Equity Pald-in-Capital B%. Preferred Stock, $100 par value, cumulative, 50.000 shares Authorized, 50,000 shares issued and outstanding In excess of per on preferred stock Total Paid-in-Capital from Preferred Stock $ 5.000.000 $ 5,300,000 $ $ 7.500.000 200.000 Common Stock, no par, $25 stated value, 1,000,000 shares authorized, 300,000 shares issued and outstanding In excess of stated value on common stock Total Paid-in-Capital from Common Stock Total Paid-in-Capital Retnined Earnings (Note A) Total Stockholder's Equity $ $ $ $ 100,000...
Contributed Capital: Common Stock - $4 par value, 5,000,000 shares authorized, 300,000 shares issued and outstanding Paid capital in Excess of Par, Common Retained Earnings Total Stockholders' Equity $1,200,000 1.600.000 2.000.000 $4,800,000 The following transactions occurred in sequence during 2019: a. Issued 40,000 shares of $100 par value, 10% cumulative preferred stock at par, b. Declared a 2 per 1 stock split on outstanding common shares. c. Bought land valued at $980,000 by using 100,000 shares of common stock. d....
4. ABC Company has 180,000 shares of common stock authorized and 50,000 shares issued and outstanding. The common stock has a $1.50 Par value and a market value of $27 per share on October 10, 2016. On October 10, 2016, ABC declares and pays a 22% stock dividend to shareholders. Record all necessary journal entries. a. Assuming this is considered a SMALL Stock Dividend, record all necessary journal entries Credit Debit Accounts Date b. Assuming this is considered a LARGE...
$5 Par Common $10 Par Preferred Additional paid-in capital $2,250,000 $50,000 Shares: Authorized 750,000 40,000 Issued 300,000 8,000 Outstanding 250,000 8,000 Retained earnings is $1,837,000, and the cost of treasury shares is $1,200,000. Required: Prepare the stockholders' equity portion of Renee's balance sheet. Accounts, Labels and Amount Descriptions Accounts Common stock Common stock, $5 par, 750,000 shares authorized, 300,000 shares issued, and 250,000 shares outstanding Preferred stock Preferred stock, $10 par, 40,000 shares authorized, 8,000 shares issued and outstanding Retained...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago