Book value of common stockholders\' equity of Dow Chemical, December 31, 2010 (f
ID: 2366971 • Letter: B
Question
Book value of common stockholders' equity of Dow Chemical, December 31, 2010 (figure in billions). Common Shares ($1.5 par value per share) $2.939; Additioan paid in capital $2.294; retained earnings 17.744; treasury shares at cost (0.247); Other (4.883); Net common equity is $17.847 a. Suppose that Dow Chemical issues 100 million shares at $20 share. Show the company's equity after the issue. (NEGATIVE AMOUNTS SHOULD BE INDICATED BY AMINUS SIGN. ENTER YOUR ANSWERS IN BILLIONS ROUNDED TO 3 DECIMAL PLACES.) What would be shares $____?; Additonal paid-in capital ____?: Retained earnings ____?: Treasury shares at cost ____?: Other______?: What would be Net common equity____? b. Suppose that Dow SUBSEQUENTLY repurchased 50 million shares at $34 a share. Rework part (a) to show the effect of the futher change. (NEGATIVE AMOUNTS SHOULD BE INDICATED BY A MINUS SIGN. ENTER YOUR ANSWERS IN BILLIONS ROUNDED TO 3 DECIMAL PLACES.) What would be Common shares $_____?: Additional paid-in captial_____?: Retained earnings _____?: Treasury shares at cost_______?: Other______?: and then what would Net common equity be ______?Explanation / Answer
1.374$ shares, capital will be almost 220$, common equity will be 0.75$,treasury shares 21$, other 0.21$,