Question

This is a two part question: - On which financial statement will you find the precise...

This is a two part question:

- On which financial statement will you find the precise amount a company spent on share repurchases in the previous period?

- Why are share repurchases considered a "return of capital" to shareholders?

Homework Answers

Answer #1

1. Buyback are to be considered while maintenance of statement of cash flows and which will also reflect at balance sheet as the equity will go lower, and it will be simultaneously adjusted with cash balance.

2. Share repurchases are return of capital to shareholders because it is a form of buying back the existing shares of shareholders at a price which is higher than the prevalent price in the market and hence it would lead to Capital gains in the hands of shareholders so it can be considered as a return to shareholders.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Analyze the financial position of Kohl’s. Find at least two resources other than the financial statement,...
Analyze the financial position of Kohl’s. Find at least two resources other than the financial statement, provide information regarding the company. Prepare an overview of what is revealed about the company by these resources, including any items that you find unusual.
Select the financial statement on which the user would most likely find the answer to the...
Select the financial statement on which the user would most likely find the answer to the question given. (Select all that apply.) How much depreciation expense did the company report during the year? a.Statement of retained earnings b.Income statement c.Balance sheet d.Statement of cash flows
Question: Tea-Tree Bay Limited is considering two financing plans to raise $10 million. The company tax...
Question: Tea-Tree Bay Limited is considering two financing plans to raise $10 million. The company tax rate is 28%. Plan A: This plan is an all-ordinary share plan, where the company sells 1,000,000 shares at $10 per share. Plan B: This plan uses financial leverage. The company is considering a debt (Bonds) Issue with a 20-year maturity period. The bond issue will carry a coupon rate of 5.5% per annum, and the principal borrowed will amount to $5 million, and...
This question has two parts Part one Financial modeling. The following information is gathered from the...
This question has two parts Part one Financial modeling. The following information is gathered from the pro forma financial statements for the upcoming year. Sales $180,000 COGS $120,000 Accounts Payable $19,000 Accounts Receivable $27,000 Total Assets $72,000 Inventory $16,000 Following including other assumptions, the analysis indicates that the external financing needed (EFN) for the coming year will be $7,000. Calculate the average days payable (ADP) that was assumed when deriving the initial amount of EFN ($7,000) from the model. Part...
This question has two parts Part one Financial modeling. The following information is gathered from the...
This question has two parts Part one Financial modeling. The following information is gathered from the pro forma financial statements for the upcoming year. Sales $180,000 COGS $120,000 Accounts Payable $19,000 Accounts Receivable $27,000 Total Assets $72,000 Inventory $16,000 Following including other assumptions, the analysis indicates that the external financing needed (EFN) for the coming year will be $7,000. Calculate the average days payable (ADP) that was assumed when deriving the initial amount of EFN ($7,000) from the model. Part...
PART A Preparing comprehensive financial statement forecasts involves six steps. Among these steps are all the...
PART A Preparing comprehensive financial statement forecasts involves six steps. Among these steps are all the following except: Multiple Choice Forecast depreciation expense and tax expense for each period. Forecast sales revenue for each period in the forecast horizon. Forecast the market price per share for the company’s common stock for each period. Forecast the company’s financial structure and dividend policy for each period PART B Consider the following table of Earnings Components: Firm A Firm B Firm C Reported...
1. Who is responsible for the preparation of financial statements? The Board of Directors External auditors...
1. Who is responsible for the preparation of financial statements? The Board of Directors External auditors Shareholders Company management 2. On December 1st a company pays $1,380 to a catering company for the company Christmas party scheduled for mid December 2015. In recording this transaction the December 31st financial statements would reflect: a decrease to assets and a decrease to shareholders' equity. a decrease to liabilities and a decrease to shareholders' equity. a decrease to assets and an increase to...
Please answer both they are part of one question 50 a)-Financial intermediaries who use financial services...
Please answer both they are part of one question 50 a)-Financial intermediaries who use financial services are no longer linked to geographic locations due to _______ and _________. Select one: a. technological advances, market deregulation b. technological advances, internet access c. market deregulation, internet access d. social media, security software Clear my choice 50 b) Which one of the following is NOT considered a financial intermediary? Select one: a. an insurance company b. an accounting firm c. a commercial bank...
The role of the financial manager Instructions: In this discussion forum, you will discuss the role...
The role of the financial manager Instructions: In this discussion forum, you will discuss the role of the financial manager and the main decisions they have to face in order to fulfill the mission of the company they manage. After reviewing the required study material, briefly discuss the following question: Of the three managerial decisions faced by the financial manager in his administrative role, which one do you understand adds the most value to the firm and why? In stating...
QUESTION 5 STATEMENT OF FINANCIAL POSITION (20 Marks) Required: Use the information supplied by MASTER LTD....
QUESTION 5 STATEMENT OF FINANCIAL POSITION Required: Use the information supplied by MASTER LTD. to prepare the Statement of Financial Position as at 28 February 2017. NB: Copy the format given below in your answer book.  Notes to the financial statement is NOT REQUIRED.  Show your workings in brackets to indicate how you have computed the final amount. INFORMATION: POST ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2017. Ordinary Share Capital ( 730 000 shares ) 1 825 000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT