Suppose that Heinz issues 10 million shares at $40 a share. Rework table 14.2 to

Question

Suppose that Heinz issues 10 million shares at $40 a share. Rework table 14.2 to show the company's equity after the issue and then suppose that Heinz subsequently repurchaseed 500,000 shares at $50 a share. Rework part the first part to show the effect of the further change.

Figures are in the Millions
This is table 14.2
Common shares (.25 par value per share) $108
additional paid-in capital 581
retained earnings 5,779
treasury shares at cost -4,406
other -219
net common equity 1,843
Note:
authorized shares 600
Issued shares, of which 431
outstanding shares 322
treasury shares 109


a.
Heinz Issues Shares: 10 million
Share Price: 40

Rework to Show Equity:


Need to find New Shares & New equity
Common Shares @ $.25 per share 108
Additional Paid in Capital 581
Retained Earnings 5,779
Treasury Shares (4,406)
Other (219)
Net Common Equity 1,843

Authorized Shares 600
Issued Shares 431
Oustanding Shares 322
Treasury Shares 109



b.
Heinz repurchase Shares 500,000
Share Price 50

Rework to Show Equity:

Need to find New Equity & Final equity
Common Shares @ $.25 per share
Additional Paid in Capital
Retained Earnings
Treasury Shares
Other
Net Common Equity

Explanation / Answer

WHERES THE TABLE

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