MC Qu. 11-62 The following data are taken from the stockholders' ... The following data are taken from the stockholders' equity section of the balance sheet of Driftwood Company: Common Stock, $10 Par Value, 60,000 Shares Authorized, 33,600 Shares $ 336,000 Issued, 31,600 Shares Outstanding Additional Paid-in Capital 168,000 Retained Earnings 140,000 Treasury Stock, 2,000 Shares 72,800 What was the average issue price per share of the common stock

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Business

Maggie Barnes

9 June, 10:21

MC Qu. 11-62 The following data are taken from the stockholders' ... The following data are taken from the stockholders' equity section of the balance sheet of Driftwood Company: Common Stock, $10 Par Value, 60,000 Shares Authorized, 33,600 Shares $ 336,000 Issued, 31,600 Shares Outstanding Additional Paid-in Capital 168,000 Retained Earnings 140,000 Treasury Stock, 2,000 Shares 72,800 What was the average issue price per share of the common stock

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Dalton Robertson · Answer 1

On average the firm issued shares at $15 dollars each

Explanation:

the treasury stock are purchased at the market price which is not the same as the issuance price thus, we ignore it.

the company issued 33,600 shares with par value of $10

from which it has $168,000 additional paid-in

In total: 33,600 x $10 = 336,000

+ 168,000

Total paid-in 504,000

504,000 / 33,600 = $15