Book value of common stockholders' equity of Dow Chemical, December 31, 2010 (figures in billions).
|
|
|
|
| Common shares ($2.5 par value per share) |
$ |
2.951 |
|
| Additional paid-in capital |
|
2.306 |
|
| Retained earnings |
|
17.756 |
|
| Treasury shares at cost |
|
(0.259 |
) |
| Other |
|
(4.895 |
) |
|
|
|
|
| Net common equity |
$ |
17.859 |
|
|
|
|
|
|
| a. |
Suppose that Dow Chemical issues 100 million shares at $25 share. Show the company's equity after the issue. (Negative amounts should be indicated by a minus sign. Enter your answers in billions rounded to 3 decimal places.)
|
|
| Common shares |
$ |
| Additional paid-in capital |
|
| Retained earnings |
|
| Treasury shares at cost |
|
| Other |
|
|
|
| Net common equity |
$ |
|
|
|
| b. |
Suppose that Dow subsequently repurchased 50 million shares at $36 a share. Rework part (a) to show the effect of the further change. (Negative amounts should be indicated by a minus sign. Enter your answers in billions rounded to 3 decimal places.)
|
|
| Common shares |
$ |
| Additional paid-in capital |
|
| Retained earnings |
|
| Treasury shares at cost |
|
| Other |
|
|
|
| Net common equity |
$ |
|
|
| Make sure to round in each section for final answer! |