Suppose that Dow Chemical now issues 30 million shares at $30 a share. What will
ID: 2717313 • Letter: S
Question
Suppose that Dow Chemical now issues 30 million shares at $30 a share. What will be the new account values? (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Enter your answers in millions of dollars.)
What would happen to the book value of common stockholders’ equity if instead Dow bought back 15 million shares at $46 per share? (Negative amounts should be indicated by a minus sign. Enter your answers in millions of dollars.)
Book value of common stockholders’ equity of Dow Chemical, December 31, 2012 (figures in $ millions).Explanation / Answer
a.
b.
$ Common Stock ($1.00 par value per share) 3052 Additional paid-in capital[3295 + (29*30)] 4165 Retained earnings 18509 Treasury shares at cost - Other (7921) Net common equity 17805