In previous years, Cox Transport reacquired 2 million treasury shares at $20 per share and, later, 1 million treasury shares at $26 per share. If Cox now sells 1 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? (Enter your answer in millions (i. e., 10,000,000 should be entered as 10).)

Question

Dante Rosario

Business

15 January, 02:18

In previous years, Cox Transport reacquired 2 million treasury shares at $20 per share and, later, 1 million treasury shares at $26 per share. If Cox now sells 1 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? (Enter your answer in millions (i. e., 10,000,000 should be entered as 10).)

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Answers (1)

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Iliana Huynh · Answer 1

The solution to the given problem is provided below.

Explanation:

Cash (1 million shares x 29) 29 mil

Paid - in capital - share repurchase (difference) 7 mil

Treasury stock (1 million shares x 22) 22 mil