In previous years, Cox Transport reacquired 4 million treasury shares at $20 per share and, later, 2 million treasury shares at $26 per share. If Cox now sells 2 million treasury shares at $29 per share and determines cost as the weighted-average cost of treasury shares, by what amount will Cox’s paid-in capital - share repurchase increase?
In previous years, Cox Transport reacquired 4 million treasury shares at $20 per share and, later, 2 million treasury shares at $26 per share. If Cox now sells 2 million treasury shares at $29 per share and determines cost as the weighted-average cost of treasury shares, by what amount will Cox’s paid-in capital - share repurchase increase?
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 4P
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In previous years, Cox Transport reacquired 4 million treasury shares at $20 per share and, later, 2 million treasury shares at $26 per share.
If Cox now sells 2 million treasury shares at $29 per share and determines cost as the weighted-average cost of treasury shares, by what amount will Cox’s paid-in capital - share repurchase increase?
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