Book value of common stockholders’ equity of FedEx, May 31, 2014 (figures in $ millions) Common...

Book value of common stockholders’ equity of FedEx, May 31, 2014 (figures in $ millions)


Common stock ($0.10 par value per share)	$	32
Additional paid-in capital		2,788
Retained earnings		16,902
Treasury shares at cost		(4,927	)
Other		170
Net common equity		14,965
Note:
Authorized shares (millions)		900
Issued shares, of which		320
Outstanding shares		278
Treasury shares		42

a. Suppose that FedEx now issues 4 million shares at $130 a share. Update the table below with the new values. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place.)


Common shares ($0.10 par value per share)
Additional paid-in capital
Retained earnings
Treasury shares at cost
Other
Net common equity	0.0

b. What would happen to the book value of common stockholders’ equity if instead FedEx bought back 4 million shares at $130 per share? (Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place.)


Common shares ($0.10 par value per share)
Additional paid-in capital
Retained earnings
Treasury shares at cost
Other
Net common equity	0.0

Expert Solution


	JOURNAL ENTRY FOR ISSUE OF NEW SHARES:
		($ million)	($ million)
	Cash….Dr	520		(4*130)
	Common Stock……Cr		0.4	(4*0.1)
	AdditionalPaid in Capital		519.6	(520-0.4)


	Common shares ($0.10 par value per share)	32.4	(32+0.4)
	Additional paid-in capital	3307.6	(2788+519.6)
	Retained earnings	16902	(No Change)
	Treasury shares at cost	-4927	(No Change)
	Other	170	(No Change)
	Net common equity	15485
	Net common equity Before issue	14965
	Amount of shares issued	520
	Net common equity after issue	15485

b	JOURNAL ENTRY FOR SHARE BUY BACK
		($ million)	($ million)
	Treasury Shares at cost….Dr	520		(4*130)
	Cash …………………………………………....Cr		520

	Common shares ($0.10 par value per share)	32
	Additional paid-in capital	2788
	Retained earnings	16902
	Treasury shares at cost	-5447	(-4927-520)
	Other	170
	Net common equity	14445
	Net common equity Before issue	14965
	Amount of share buy back	520
	Net common equity after issue	14445	(14965-520)

jeff jeffy answered 1 year ago

Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2014: Common stock,...

Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2014: Common stock, par value $20; authorized 75,000 shares; issued and outstanding 45,000 shares $ 900,000 Paid-in capital in excess of par value 350,000 Retained earnings 300,000 $1,550,000 During 2015, the following transactions occurred relating to stockholders' equity: 3,000 shares were reacquired at $28 per share. 3,000 shares were reacquired at $35 per share. 1,800 shares of treasury stock were sold at $30 per...

Company A Partial Balance Sheet December 31, 2014 Stockholders’ Equity Paid-in Capital Capital Stock Common...

Company A Partial Balance Sheet December 31, 2014 Stockholders’ Equity Paid-in Capital Capital Stock Common Stock, no par $10 stated value, $2,480,000 2,000,000 shares authorized, 248,000 shares issued and outstanding Additional paid-in capital Common Stock 3,720,000 Total paid-in capital 6,200,000 Retained Earnings 540,000 Total Stockholders’ Equity $6,740,000 On February 15, 2015 the company issued 25,000 shares at $32 per share. On July 2, they repurchased 4,610 shares of its common stock at $28 per...

The stockholders’ equity section on the December 31, 2014, balance sheet of American Corporation follows: Stockholders’...

The stockholders’ equity section on the December 31, 2014, balance sheet of American Corporation follows: Stockholders’ Equity Contributed capital Preferred stock (par $21; authorized 17,000 shares, ? issued, of which 700 shares are held as treasury stock) $ 126,000 Common stock (no-par; authorized 24,000 shares, issued and outstanding 9,000 shares) 801,000 Contributed capital (includes $3,000 from treasury stock transactions) 15,000 Retained earnings 48,000 Cost of treasury stock, preferred (16,800 ) Required: 1. Calculate the number of shares of preferred stock...

Here are book- and market-value balance sheets of the United Frypan Company (figures in $ millions):...

Here are book- and market-value balance sheets of the United Frypan Company (figures in $ millions): Book-Value Balance Sheet Net working capital $ 35 Debt $ 40 Long-term assets 65 Equity 60 $ 100 $ 100 Market-Value Balance Sheet Net working capital $ 35 Debt $ 40 Long-term assets 190 Equity 185 $ 225 $ 225 Assume that MM’s theory holds except for taxes. There is no growth, and the $40 of debt is expected to be permanent. Assume a...

Here are book- and market-value balance sheets of the United Frypan Company (figures in $ millions):...

Here are book- and market-value balance sheets of the United Frypan Company (figures in $ millions): Book-Value Balance Sheet Net working capital $ 45 Debt $ 45 Long-term assets 55 Equity 55 $ 100 $ 100 Market-Value Balance Sheet Net working capital $ 45 Debt $ 45 Long-term assets 200 Equity 200 $ 245 $ 245 Assume that MM’s theory holds except for taxes. There is no growth, and the $45 of debt is expected to be permanent. Assume a...

$ millions May 31, 2015 May 31, 2014 Operating assets $62,090 $57,002 Nonoperating assets 54,368 38,819...

$ millions May 31, 2015 May 31, 2014 Operating assets $62,090 $57,002 Nonoperating assets 54,368 38,819 Total assets 116,458 95,821 Operating liabilities 20,180 19,055 Nonoperating liabilities 41,958 24,097 Total liabilities 62,138 43,152 Total Oracle stockholders' equity 54,320 52,669 Total revenues 38,559 Operating income before tax 13,993 Nonoperating expense before tax 1,037 Tax expense 3,498 Net income 9,458 I am having trouble calculating RNOA and the other solutions I have found on Chegg are wrong.

The stockholders' equity section of the balance sheet appears as follows at January 1, 2014: Common...

The stockholders' equity section of the balance sheet appears as follows at January 1, 2014: Common Stock, $2 par, 2,000 shares issued and outstanding $4,000 Paid-in Capital in Excess of Par--Common Stock 1,600 Total Capital Stock 5,600 Retained Earnings 5,400 Total Stockholders' Equity $11,000 On March 1, 2014, the company repurchased 800 shares of its common stock at $12 per share but on April 6, 2014, it reissued 600 shares of the shares at $20 per share. A) Prepare the...

Jungle Corporation's stockholder's equity section at December 31, 2014 appears below: Stockholders equity Paid in Capital...

Jungle Corporation's stockholder's equity section at December 31, 2014 appears below: Stockholders equity Paid in Capital Common stock, $10 par, 60,000 outstanding $600,000 Paid in Capital in excess of par 150,000 Total paid in capital $750,000 Retained Earnings 150,000 Total Stockholder's Equity $900,000 On June 30, 2015, the board of directors of Kenner Corp declared a 15% stock dividend, payable on July 31, 2015, to stockholders of record on July 15, 2015. The fair value of Kenner Corp's stock on...

Cinders MarketingCinders Marketing Corporation reported the following? stockholders' equity at December 31? (adapted and in ?millions):...

Cinders MarketingCinders Marketing Corporation reported the following? stockholders' equity at December 31? (adapted and in ?millions): During the next? year, Cinders MarketingCinders Marketingpurchased treasury stock at a cost of $28 million and resold treasury stock for $9 million? (this treasury stock had cost Cinders MarketingCinders Marketing $3 ?million). Common stock.................................$281 Additional paid-in capital..................275 Retained Earnings............................2,129 Treasury Stock................................ (611) Total Stockholders' Equity.................$2,074 1. Record the purchase and resale of Cinders Marketing'sCinders Marketing's treasury stock. 2. ?Overall, how much did? stockholders' equity...

The stockholders equity accounts of G.K. Chesterton Company have the following balances on December 31, 2014....

The stockholders equity accounts of G.K. Chesterton Company have the following balances on December 31, 2014. Common stock, $10 par, 343,000 shares issued and outstanding $3,430,000 Paid-in capital in excess of common stock 1,299,000 Retained earnings 5,676,000 Shares of G.K. Chesterton Company stock are currently selling on the Midwest Stock Exchange at $39. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no...

Question

Book value of common stockholders’ equity of FedEx, May 31, 2014 (figures in $ millions) Common...

Solutions

Expert Solution

Related Solutions

Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2014: Common stock,...

Company A Partial Balance Sheet December 31, 2014 Stockholders’ Equity Paid-in Capital Capital Stock Common...

The stockholders’ equity section on the December 31, 2014, balance sheet of American Corporation follows: Stockholders’...

Here are book- and market-value balance sheets of the United Frypan Company (figures in $ millions):...

Here are book- and market-value balance sheets of the United Frypan Company (figures in $ millions):...

$ millions May 31, 2015 May 31, 2014 Operating assets $62,090 $57,002 Nonoperating assets 54,368 38,819...

The stockholders' equity section of the balance sheet appears as follows at January 1, 2014: Common...

Jungle Corporation's stockholder's equity section at December 31, 2014 appears below: Stockholders equity Paid in Capital...

Cinders MarketingCinders Marketing Corporation reported the following? stockholders' equity at December 31? (adapted and in ?millions):...

The stockholders equity accounts of G.K. Chesterton Company have the following balances on December 31, 2014....