Amber corporation purchases? 50,000 shares of its own? $10 par value common stock for? $50 per share. what will be the effect on? stockholders' equity?

a. decrease? $2,500,000

b. decrease? $500,000

c. increase? $500,000

d. increase? $2,500,000

Question

Business

Rayna Simpson

30 March, 06:25

Amber corporation purchases? 50,000 shares of its own? $10 par value common stock for? $50 per share. what will be the effect on? stockholders' equity?

a. decrease? $2,500,000

b. decrease? $500,000

c. increase? $500,000

d. increase? $2,500,000

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Answers (1)

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Abraham Abbott · Answer 1

Amber Corporation is initiating a stock buyback in which they are purchasing common stock at $50 and the nominal/par/face value is $10 and the quantity of shares being purchased is 50,000. Multiply the buyback offer rate by the quantity of stock and you will find the rate if the shareholders equity will fluctuate by. If the buyback price is greaterthan current par value, then after the buyback operation shareholders can expect to a rise in their equity.

Amber corporation purchases? 50,000 shares of its own? $10 par value common stock for? $50 per share. what will be the effect on? stockholders' equity?a. decrease? $2,500,000b. decrease? $500,000c. increase? $500,000d. increase? $2,500,000

Amber corporation purchases? 50,000 shares of its own? $10 par value common stock for? $50 per share. what will be the effect on? stockholders' equity?

a. decrease? $2,500,000

b. decrease? $500,000

c. increase? $500,000

d. increase? $2,500,000