Pizza Pie R-Squared is a pizzeria that specializes in providing college students with as many square...

Transcribed Image Text:

Pizza Pie R-Squared is a pizzeria that specializes in providing college students with as many "square" meals as possible. The company is cash flush, and has decided to buy back some of its outstanding stock. The stockholders' equity section of their balance sheet is found below. If Pizza Pie R-Squared buys back 15% of the stock they issued at the market price of $21 per share, how much will their overall stockholders' equity change? Please respond to the nearest dollar, and make sure you include the correct sign (negative means stockholders' equity is reduced by this action, and no sign is positive impact on stockholders' equity). Pizza Pie R-Squared (Right before Stock Repurchase) Common Stock Par Shares Issues Capital in Excess of Par Value Treasury Stock Retained Earnings Total Stockholder Equity $ 2.25 425,000 $ 956,250 $ $ 863,485 (159,663) 2,986,645 $ 4,966,043 Pizza Pie R-Squared is a pizzeria that specializes in providing college students with as many "square" meals as possible. The company is cash flush, and has decided to buy back some of its outstanding stock. The stockholders' equity section of their balance sheet is found below. If Pizza Pie R-Squared buys back 15% of the stock they issued at the market price of $21 per share, how much will their overall stockholders' equity change? Please respond to the nearest dollar, and make sure you include the correct sign (negative means stockholders' equity is reduced by this action, and no sign is positive impact on stockholders' equity). Pizza Pie R-Squared (Right before Stock Repurchase) Common Stock Par Shares Issues Capital in Excess of Par Value Treasury Stock Retained Earnings Total Stockholder Equity $ 2.25 425,000 $ 956,250 $ $ 863,485 (159,663) 2,986,645 $ 4,966,043

Answer rating: 100% (QA)

The market value of the outstanding shares is calculated by multiplyin... View the full answer