tb mc qu. 11-53 (static) a corporate charter specifies that the company may...

a corporate charter specifies that the company may sell up to 20 million shares of stock. the company sells 12 million shares to investors and later buys back 3 million shares. the current number of outstanding shares after these transactions have been accounted for is:

Question

tb mc qu. 11-53 (static) a corporate charter specifies that the company may...

a corporate charter specifies that the company may sell up to 20 million shares of stock. the company sells 12 million shares to investors and later buys back 3 million shares. the current number of outstanding shares after these transactions have been accounted for is:

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "explain_then_answer", "quick" ], "needs_drawing": false, "concepts_used": [ "Authorized Shares", "Issued Shares", "Outstanding Shares", "Treasury Stock" ], "new_concepts": [], "current_concepts": [ "Authorized Shares", "Issued Shares", "Outstanding Shares", "Treasury Stock" ] } ## Identify the given share quantities $$ \begin{aligned} &\text{Authorized Shares} = 20\text{ million} \ &\text{Issued Shares} = 12\text{ million} \ &\text{Treasury Shares (bought back)} = 3\text{ million} \end{aligned} $$ ## Calculate outstanding shares $$ \begin{aligned} &\text{Outstanding Shares} = \text{Issued Shares} - \text{Treasury Shares} \ &\text{Outstanding Shares} = 12\text{ million} - 3\text{ million} = 9\text{ million} \end{aligned} $$ 9 million shares { "subject": "Business", "question_type": "Free Response", "knowledge_point": [ "Business", "Accounting", "Outstanding Shares" ] }

Sovi.AI - AI Math Tutor

QUESTION IMAGE

Question

Explanation:

Identify the given share quantities

Calculate outstanding shares

Answer: