Groupe Danone is the world's #1 producer of fresh dairy prod- ucts. The company is also...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Groupe Danone is the world's #1 producer of fresh dairy prod- ucts. The company is also among the world leaders in bottled water and several other food and beverage categories. Based in France, its net revenues in 2004 were €13.7 billion. In 2004, the following transactions affecting sharchold- ers' equity took place: • Dividends of €IO8 million were declared and paid. • 2.6 million shares of common stock were bought back at an average price of €60.40. The shares were cancelled imme- diately after purchase. • 750,000 shares of common stock (par value = €0.50) were reissued from corporate treasury at an average price of €51. The average price paid by Danone for the reissued shares was €74.67. Required a. Why do companies buy back their own shares? b. Why does Danone keep some of the repurchased shares in corporate treasury, and not cancel them? c. Give the summary journal entries to record all of the above events. Groupe Danone is the world's #1 producer of fresh dairy prod- ucts. The company is also among the world leaders in bottled water and several other food and beverage categories. Based in France, its net revenues in 2004 were €13.7 billion. In 2004, the following transactions affecting sharchold- ers' equity took place: • Dividends of €IO8 million were declared and paid. • 2.6 million shares of common stock were bought back at an average price of €60.40. The shares were cancelled imme- diately after purchase. • 750,000 shares of common stock (par value = €0.50) were reissued from corporate treasury at an average price of €51. The average price paid by Danone for the reissued shares was €74.67. Required a. Why do companies buy back their own shares? b. Why does Danone keep some of the repurchased shares in corporate treasury, and not cancel them? c. Give the summary journal entries to record all of the above events.
Expert Answer:
Answer rating: 100% (QA)
bg huodwo op hym ways in which ays wealth to 9ts sharehold ers Adthough stock bck their own Shoies T... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Why do companies buy back their own stock?
-
At an average price of $350, is the demand for chips elastic, inelastic, or unit elastic? Use the total revenue test to answer this question. The demand schedule for computer chips is Quantity...
-
Deere & Company was founded in 1837 and today is the worlds leading producer of agricultural equipment. Assume the following information is taken from its annual report for the year ended October 31,...
-
What are the income-distribution consequences of fashion? Can the need to be seen driving a new car by the rich be a boon to those with lower incomes who will ultimately purchase a better,...
-
1. Do you believe TAMU should be held vicariously liable under the doctrine of respondeat superior in this case? Why or why not? 2. Assume that the directors were independent contractors rather than...
-
Consider the physics of a rear-end automobile collision between two identical automobiles on a high speed highway. One of the vehicles is stopped by traffic. and the other runs into it from the rear...
-
The members of the truss are assumed to be pin connected. If member \(G F\) is an \(\mathrm{A}-36\) steel rod having a diameter of 2 in., determine the greatest magnitude of load \(\mathbf{P}\) that...
-
Fire Out Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. All materials are entered at the beginning of each process. On October 1, 2017,...
-
Visions designs, markets, and distributes audio and gaming headphones, earbuds, and speakers. Assume that last year, Visions reported cost of goods sold of $171 million. Assume that this year, cost...
-
The first quarter tax return needs to be filed for Prevosti Farms and Sugarhouse by April 15, 2019. For the purpose of the taxes, assume the second February payroll amounts were duplicated for the...
-
Test 1 1. Given that the key is 25, with the user of Caesar cipher, encrypt the following letters (6 Marks) C I P H E R 2. The plaintext cryptography is converted into the ciphertext fubswrjudskb by...
-
Discuss the differences between the attest function and advisory services.
-
Give an example of independent verification in an IT environment.
-
To ensure that all the project work is considered, the project manager and his team create a bottom-up estimate. Of the following, which is not an advantage of creating such an estimate? a. The...
-
What risks do data consolidation in an IT environment pose?
-
Explain how the audit trail differs between a manual system and a computer system.
-
9.27 Air stored in a tank at 200 psia and 150F flows into a second tank at 160 psia through a 1.70-in.-diameter flow nozzle. Show that 16.9 slugs of air per minute are moving from one tank to the...
-
The following T-accounts show postings of selected transactions. Indicate the journal used in recording each of these postings a through e. Cash Accounts Receivable Inventory (d) 500 (e) 300 (b)...
-
Use the concept of marginal utility to explain the following: Newspaper vending machines are designed so that once you have paid for one paper, you could take more than one paper at a time. But soda...
-
Sabine can't tell the difference between Coke and Pepsi-the two taste exactly the same to her. a. What is Sabine's marginal rate of substitution of Coke in place of Pepsi? b. Draw a few of Sabine's...
-
Taiwan is a major world supplier of semiconductor chips. A recent earthquake severely damaged the production facilities of Taiwanese chip - producing companies, sharply reducing the amount of chips...
-
Jayla just landed an internship with Acme Incorporated in the Payroll Department. She was excited because these internships usually turned into a full-time job after graduation. Jayla was hired by...
-
Demarco just graduated from Texas University and had been snatched up by Xeon Natural Resources Incorporated, one of the top natural resource extraction companies in the world. Because he was...
-
After Megan Jones finished her BS degree in Management at The University of Rhode Island, she landed a great job with the app developing company Global App Creations (GAC). In her six months of...
Study smarter with the SolutionInn App