Suppose that Dow Chemical issues 100 million shares at $25 share. Show the compa
ID: 2701981 • Letter: S
Question
Suppose that Dow Chemical issues 100 million shares at $25 share. Show the company%u2019s equity after the issue. (Negative amounts should be indicated by a minus sign. Enter your answers in billions rounded to 3 decimal places.)
Suppose that Dow subsequently repurchased 50 million shares at $40 a share. Rework part (a) to show the effect of the further change. (Negative amounts should be indicated by a minus sign. Enter your answers in billions rounded to 3 decimal places.)
Explanation / Answer
a.
Suppose that Dow Chemical issues 100 million shares at $25 share. Show the company%u2019s equity after the issue. (Negative amounts should be indicated by a minus sign. Enter your answers in billions rounded to 3 decimal places.)
Common shares
$
Additional paid-in capital
Retained earnings
Treasury shares at cost
Other
Net common equity
$
b.
Suppose that Dow subsequently repurchased 50 million shares at $40 a share. Rework part (a) to show the effect of the further change. (Negative amounts should be indicated by a minus sign. Enter your answers in billions rounded to 3 decimal places.)
Common shares
$
Additional paid-in capital
Retained earnings
Treasury shares at cost
Other
Net common equity
$
a.
Suppose that Dow Chemical issues 100 million shares at $25 share. Show the company%u2019s equity after the issue. (Negative amounts should be indicated by a minus sign. Enter your answers in billions rounded to 3 decimal places.)
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