Compute the book value per common share

Assignment Help Finance Basics
Reference no: EM131408052

The condensed 2008 balance sheet of Honeywell International follows (dollars in millions):

2468_9ff1e407-5fdb-426c-87d9-7ba38f6e1d98.png

Seven hundred thirty-five million shares of common stock and no preferred stock were outstanding.
The following requirements are independent:

a. Compute the book value per common share.

b. Compute the book value per common share if the company issues 50 million shares of common stock at $32 per share.

c. Compute the book value per common share if the company issues 50 million shares of common stock at $20 per share.

d. Compute the book value per outstanding share of common stock if the company purchases 50 million shares of treasury stock at $32 per share.

e. Compute the book value per outstanding share of common stock if the company purchases 50 million shares of treasury stock at $20 per share.

f. What effect does issuing stock have on the book value of the outstanding shares? Upon what does this effect depend?

g. What effect does purchasing treasury stock have on the book value of the outstanding shares? Upon what does this effect depend?

Reference no: EM131408052

Questions Cloud

Do you believe would be best suited to an od analysis : Now that you've considered the background and the strengths and weaknesses of these models, which of them do you believe would be best suited to an OD analysis of your chosen Fortune "Best 100" organization? While you do not need to cover every ch..
Determining the workplace politics : As it relates to power and politics in the workplace...When you consider the term "workplace politics" what comes to mind for you personally based upon your own experience?
Argument essay abot marjioana ligalization : Write Claim of Definition Argument Essay abot Marjioana ligalization - What is a claim of definition argument?
Investigate a social media public : For this assignment, you will investigate a social media public relations (PR) campaign by an organization. Some examples of platforms are LinkedIn, Twitter, Facebook, Google+, Pinterest, and YouTube. The organizations can be national or can be lo..
Compute the book value per common share : Compute the book value per outstanding share of common stock if the company purchases 50 million shares of treasury stock at $20 per share.
Paper outlining how to communicate internal : Please write a 300 word paper outlining how to communicate internal ( within a company) change as it relates to the below topics:
Use the level of significance in reaching a conclusion : For the following summary table for a one-way ANOVA, fill in the missing items, identify the null and alternative hypotheses, then use the 0.025 level of significance in reaching a conclusion regarding the null hypothesis.
Inappropriate-for astrategically important country : Why would licensing sometimes be appropriate-and sometimes inappropriate-for astrategically important country?
Building with a remaining economic life : During an inspection of an office building with a remaining economic life of 10 years, you notice that the boiler is deteriorating and has a remaining useful life of only 15 years. On the date of inspection, the boiler is operative and there is no..

Reviews

Write a Review

Finance Basics Questions & Answers

  The genesis operations management team was excited to

the genesis operations management team was excited to understand the various options for securing financing to fund the

  Different countries conduct monetary policy in different

different countries conduct monetary policy in different ways. at the following website

  Academic service learning in human resource management

Academic Service Learning in Human Resource Management Education Author: Susan R. Madsen, Utah Valley State College, Orem, Utah

  Probability that is departed on-time

The probability that a flight departs Sydney Kingsford Smith Airport on-time is 0.52. If Singapore Airlines flight SQ232 from Sydney to Singapore departs on-time, the probability that it arrives on-time is 0.69. If it does not depart on-time, then..

  Why planning and forecasting a global work force different

Why are planning and forecasting a global work force so difficult?- Why are so many countries bothered by their "brain drain"?

  Calculate the promised yield on the bond

Thus, you would expect to receive $950.Because of the uncertainty, the discount rate is 5.9%. Calculate the promised yield on the bond.

  Frequency of accidents

The data below, taken from Greenwood and Yule, (1920)3 , shows the frequency of accidents occurring, over a ?ve-week period, to 647 women making high explosives during World War I.

  Optimal capital structure based on the trade-off theory

Harley Motors has $25 million in assets, which were financed with $10 million of debt and $15 million of equity. Harley's tax rate is 40%. If Harley's unlevered beta is 0.8, what is Harley's current (levered) beta? Show your work. Explain how the ..

  How much faster could you pay the loan off by making plan

All is not lost: You just received an offer in the mail to transfer your $12,000 balance from your current credit card, which charges an annual rate of 19.8 percent, to a new credit card charging a rate of 10.4 percent.

  Computation of net present values

Computation of Net Present Values and Internal Rate of Returns and Cross Over rates to select among mutually exclusive projects based on cash flows and discounting rates

  What has happened to the competitiveness

What has happened to the competitiveness of GE's Hungarian operations during 1990 and 1991? Explain.

  What are the payments on the loans

Assume S&S takes out a bullet loan under the terms described. What are the payments on the loans?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd