Book value of common stockholders' equity of FedEx, May 31, 2020 (figures in $ millions) Common shares ($0.10 par value per share) Additional paid-in capital $37 3,093 Retained earnings Treasury shares at cost Other 23,718 (7,696) (365) Net common equity $ 18,787 Note: Authorized shares (millions) Issued shares, of which: Outstanding shares Treasury shares. 323 47 Required: a. Suppose that FedEx now issues 6 million shares at $150 a share. Update the table below with the new values. b. What would happen to the book value of common stockholders' equity if instead FedEx bought back 6 million shares at $150 per share?

Book value of common stockholders' equity of FedEx, May 31, 2020 (figures in $ millions) Common shares ($0.10 par value per share) Additional paid-in capital $37 3,093 Retained earnings Treasury shares at cost Other 23,718 (7,696) (365) Net common equity $ 18,787 Note: Authorized shares (millions) Issued shares, of which: Outstanding shares Treasury shares. 323 47 Required: a. Suppose that FedEx now issues 6 million shares at $150 a share. Update the table below with the new values. b. What would happen to the book value of common stockholders' equity if instead FedEx bought back 6 million shares at $150 per share?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 19P: Anoka Company reported the following selected items in the shareholders equity section of its...

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