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The charter of Vista West Corporation specifies that it is authorized to issue 300,000 shares of common stock. Since the company was incorporated, it has sold a total of 160,000 shares (at $16 per share) to the public. It has bought back a total of 25,000. The par value of the stock is $3. When the stock was bought back from the public, the market price was $40. Required: 1. Determine the authorized shares. 2. Determine the issued shares. 3. Determine the outstanding shares.

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ahmedgodtrust

Answer:

1. Authorized shares = 300,000 shares

2. Issued shares = 160,000 shares

3. Outstanding shares

= Issued shares- Shares repurchased

= 160,000 - 25,000

= 135,000 shares

Explanation:

Authorized shares are shares that a firm is allowed by law to issue to the            public.

Issued shares are shares that a company offers to the public for subscription.

Outstanding shares are shares remaining after the share repurchase.

Tundexi

The authorized shares is 300,000 shares, the Issued shares is 160,000 shares and the outstanding shares is 135,000 shares.

The Authorized shares refers to shares that a firm is allowed by law to issue to the willing public.

  • The Authorized shares = 300,000 shares

The Issued shares refers to the shares that the company offers to the public for subscription.

  • The Issued shares = 160,000 shares

The outstanding shares refers to the remaining shares after the share repurchase.

Outstanding shares = Issued shares - Shares repurchased

Outstanding shares = 160,000 shares - 25,000 shares

Outstanding shares = 135,000 shares

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