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The Following Information Relates to the Number of Common Shares

question 183

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The following information relates to the number of common shares of the Swan Corporation:
140,000 Authorized shares 60,000 Unissued shares 8,000 Treasury shares
Calculate the number of outstanding shares from the information given.Show your calculations.


Definitions:

Constant Growth DDM

A valuation model for stocks that assumes dividends grow at a constant rate in perpetuity, used to calculate the present value of future dividend payments.

Intrinsic Value

The true, inherent, or fundamental value of an asset, based on both tangible and intangible factors, as opposed to its market price.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Book Value

The net worth of common equity according to a firm’s balance sheet.

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