Question

Horton Industries’ shareholders’ equity included 300 million shares of $1 par common stock and a balance in paid-in capital—excess of par of $3,000 million.

Assuming that Horton retires shares it reacquires (restores their status to that of authorized but unissued shares), by what amount will Horton’s total paid-in capital decline if it reacquires 6 million shares at $9.50 per share? (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)

Answer 1

The answer and procedures of the exercise are attached in a microsoft excel document.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.