A corporate charter specifies that the company may sell up to 25 million shares

Question

A corporate charter specifies that the company may sell up to 25 million shares of stock. The company sells 17 million shares to investors and later buys back 5.5 million shares.

The current number of outstanding shares after these transactions have been accounted for is:

The number of issued shares after these transactions have been accounted for is:

A corporate charter specifies that the company may sell up to 25 million shares of stock. The company sells 17 million shares to investors and later buys back 5.5 million shares.

The current number of outstanding shares after these transactions have been accounted for is:

  
rev: 03-03-2011 25.0 million shares. 13.0 million shares. 11.5 million shares. 8.0 million shares.

The number of issued shares after these transactions have been accounted for is:

  
rev: 03-03-2011 12 million shares. 20 million shares. 13 million shares. 17 million shares.

Explanation / Answer

Hi,

Please find the answers as follows:

a) Current Number of Outstanding Shares = Shares Sold - Shares Bought Back/Treasury Stock = 17 - 5.5 = 11.5 million

b) Number of issued shares = 17 million

Thanks.

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