What effect does transaction have on net income

Reference no: EM131831180

Question: 1. Which is the better investment-common stock with a par value of $5 per share or common stock with a par value of $20 per share?

2. For what reasons might a company like IBM repurchase some of its stock (treasury stock)? 10. Monet, Inc. purchases 1,000 shares of its own previously issued $5 par common stock for $11,000. Assuming the shares are held in the treasury, what effect does this transaction have on

(a) net income,

(b) total assets,

(d) total stockholders' equity?

Reference no: EM131831180

Questions Cloud

What will be the approximate market price per share : Jayne Corporation has 10,000 shares of $15 par value common stock outstanding when it announces a 3-for-1 split.

Contrast the effects of a cash dividend and a stock dividend : Three dates associated with Petrie Company's cash dividend are May 1, May 15, and May 31. Discuss the significance of each date and give the entry at each date.

Differences between common stock and preferred stock : What are the principal differences between common stock and preferred stock? Preferred stock may be cumulative. Discuss this feature.

Treasury bonds are considered safer than corporate bonds : Treasury Bonds are generally considered safer than Corporate bonds. Yet both types of fixed income instruments are subject to some sources of risk.

What effect does transaction have on net income : Which is the better investment-common stock with a par value of $5 per share or common stock with a par value of $20 per share?

Contemplating the addition of another product line : A small business owner is contemplating the addition of another product line.

How many shares are authorized and outstanding : The corporate charter of Gage Corporation allows the issuance of a maximum of 100,000 shares of common stock. During its first 2 years of operation.

Retained earnings vs. prior year retained earnings : It ended the year with $197,500 of retained earnings vs. the prior year’s retained earnings of $159,600.

Which requires equal yearly payments : To buy your first home, you take out a 15 year (fully amortizing) mortgage for $375,000 which requires equal yearly payments.

User Account

All Pages