Asked by Elizabeth Ridgeway on May 01, 2024
Verified
The charter of Delta Corporation specified a maximum of 25,000 shares of common stock.At the current date,5,000 shares remain unissued,and 2,000 of the issued shares have been repurchased and are still held by Delta.
Calculate the number of shares that are:
A.Authorized
B.Issued
C.Held in the treasury
D.Outstanding
Treasury
Pertains to the management of an organization's revenues, expenditures, and investment strategies, often associated with government or corporate finance.
Authorized
Officially permitted or agreed upon, often referring to the maximum number of shares a corporation is legally allowed to issue.
Outstanding
Refers to shares that are currently owned by investors, including those held by public investors, institutional investors, and company insiders.
- Ascertain the equity value of shareholders based on specified financial details.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
A.Authorized shares = 25,000 = number in the corporate charter.
B.Issued shares = 20,000 = authorized shares - unissued shares = 25,000 - 5,000.
C.Held in the treasury = 2,000 = repurchased and still held by the company.
D.Outstanding shares = 18,000 = issued shares - treasury shares = 20,000 - 2,000.
B.Issued shares = 20,000 = authorized shares - unissued shares = 25,000 - 5,000.
C.Held in the treasury = 2,000 = repurchased and still held by the company.
D.Outstanding shares = 18,000 = issued shares - treasury shares = 20,000 - 2,000.
Learning Objectives
- Ascertain the equity value of shareholders based on specified financial details.