Equity appears two places within the financial statements: 1.) Shareholder’s Equity section of the balance sheet Example 1: Abbreviated Balance Sheet – The Gap‚ Inc. THE GAP‚ INC. CONSOLIDATED BALANCE SHEETS ($ and shares in millions except par value) February 2‚ 2013 January 28‚ 2012 ASSETS Current assets: Total current assets 4‚132 4‚309 Property and equipment‚ net 2‚619 2‚523 Other long-term assets
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in PUC Liz 50 shares $5‚000 + 50 shares = 100 shares Rafael 50 shares 5‚000 = 50 shares 100 shares $10‚000 total = 150 shares Liz exchanges property FMV$20‚000 for shares with FMV and legal PUC of $30‚000. ACB of property = $15‚000. Tax consequences: 84(1) deemed dividend: Increase in PUC $30‚000 Increase in net assets (20‚000) Deemed dividend $10‚000 Liz’s share 100/150 shares x $10‚000 = $6‚667 Rafael’s share 50/150 shares x $10‚000 = $3
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Shareholders prior to its issuance as it is an exempt document. Bursa Securities takes no responsibility for the contents of this share buy-back statement‚ makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this share buy-back statement. STAR PUBLICATIONS (MALAYSIA) BERHAD (COMPANY NO. 10894-D) (INCORPORATED IN MALAYSIA) S TA TEMENT TO
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Problem 17-1 Dividends and Taxes [LO2] Dark Day‚ Inc.‚ has declared a $5.60 per share dividend. Suppose capital gains are not taxed‚ but dividends are taxed at 15 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. Dark Day sells for $94.10 per share‚ and the stock is about to go ex-dividend. What do you think the ex-dividend price will be? (Round your answer to 2 decimal places. (e.g.‚ 32.16)) Ex-dividend price $ Problem 17-2 Stock Dividends
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“Review of SEBI (DIP) Guidelines 2000- Proposals - Series I” A. Recommendations made by the Primary Market Advisory Committee SEBI has constituted a standing committee‚ chaired by Shri M S Verma‚ Chairman‚ TRAI. This committee comprises representatives from ICAI‚ ICSI‚ investor associations‚ merchant bankers‚ Industry associations‚ Ministry of Finance etc. The terms of reference of this committee are as follows : 1. To advise SEBI on matters relating to regulation of intermediaries for ensuring
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the new shares to publics at $38‚ but right now the commission fee is $3‚ and the market price is $39‚ but the investment banker believe that the price will drop to $38 and the commission fee is $2 per share subscribed. To capitalize exact 20millions dollar‚ Art Deco reproductions need to issue 556‚000 new shares in total. And the stock price will drop slightly. And the company need to pay the investment banker $1‚112‚000 for the commission fees. There are some advantages selling shares to public
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at the discretion of the directors of the corporation‚ which is paid in the form of shares of stock‚ as opposed to money‚ and increases the number of shares. * A dividend paid as additional shares of stock rather than as cash. If dividends paid are in the form of cash‚ those dividends are taxable. When a company issues a stock dividend‚ rather than cash‚ there usually are not tax consequences until the shares are sold. * Explanation: When a corporation declares a stock dividend‚ it adds
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shareholders may side with corporate raiders in voting their shares in mergers or takeovers attempts. 17-2. There is no difference in dividend payments. The difference in trading values reflects a premium for being able to participate in electing a majority to the board of directors. 17-3. Usually corporations issue different classes of stock so that a controlling group can continue to control the board with a relatively small number of shares. 17-4. One disadvantage is that so-called non-voting
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ISSUE An offer of free additional shares to existing shareholders. A company may decide to distribute further shares as an alternative to increasing the dividend payout. Also known as a "scrip issue" or "capitalization issue". Issue of Bonus Share A bonus share is a free share of stock given to current shareholders in a company‚ based upon the number of shares that the shareholder already owns. While the issue of bonus shares increases the total number of shares issued and owned‚ it does not increase
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the 60‚000‚ $10 par value shares outstanding‚ or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share. Instructions Prepare a tabular summary of the effects of the alternative actions on the components of stockholders’ equity and outstanding shares. Problem 2 Arnold Corporation has been authorized to issue 40‚000 shares of $100 par value‚ 8%‚ noncumulative preferred stock and 2‚000‚000 shares of no-par common stock. The
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