1. Franco's Fancy Factories, Inc. has 48,000,000 shares of common stock authorized, but only has 12,000,000 share outstanding. Each share has a par value of $1.00. The company has $72,000,000 in additional paid-in-capital and retained earnings of $60,000,000. What is the total stockholder equity for this company?
a. $ 48,000,000
b. $ 72,000,000
c. $132,000,000
d. $144,000,000
e. $120,000,000
2. A firm has a market value equal to its book value. Currently, the firm has excess cash of $800, other assets of $3,200, and equity of $4,000. The firm has 400 shares of stock outstanding and net income of $500. The firm has decided to spend half of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?
380 shares
400 shares
340 shares
320 shares
360 shares