If shares of BAC increased by 1.3% from $16.98 to $17.20 in the day after its ea

Question

If shares of BAC increased by 1.3% from $16.98 to $17.20 in the day after its earnings release what is the resulting change to Stockholder's Equity on the Balance Sheet? Assume BAC has 10.6 bn shares outstanding. Increase of $2.3 Bn No Change Increase of $2.0 Bn Increase of $230 MM In 2013 a UK engine manufacturer disposed of its helicopter business for pound 250 MM. This was pound 25 MM more than what is the CEO estimated it was worth when asked by a research analyst at the beginning of 2013. Assuming they booked a pound 194 MM gain on the sale of the business, what was the carrying value of the helicopter business on the balance sheet? pound 225 MM pound 250 MM pound 56 MM No Change

Explanation / Answer

Solution.

11.

Calculation of book value of bussiness.

Disposed amount of bussiness = $250 mm.

Booked profit                           = $194 mm.

Book value                               = 56 mm.

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