2.2 EquiBank's long-term debt and stockholders' equity for December 31, 1999 is shown in the following list.
Fantastic news! We've Found the answer you've been seeking!
Question:
2.2 EquiBank's long-term debt and stockholders' equity for December 31, 1999 is shown in the following list. The bank had 1 million shares outstanding,
million
Long-term debt $ 5
Preferred stock 20
Common stock (par $1) 1
Surplus 12
Accumulated retained earnings 32
During the year 2000, EquiBank issued 200,000 additional new common shares at a price of $50 per share. The bank generated $8 million of net income and paid $5 million in dividends. It repaid $1 million of the principal on long-term debt. Prepare the same accounts as of December 31, 2000 to reflect these changes during the year.
Related Book For
Financial management theory and practice
ISBN: 978-0324422696
12th Edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
Posted Date: