Herald and Elaine own 280 and 240 shares, respectively, of Captron Corporation s

Question

Herald and Elaine own 280 and 240 shares, respectively, of Captron Corporation stock, which represent all the shares outstanding. The current market value per share is $21. Captron needs capital to expand its operations, and Elaine is willing to contribute to Captron silver bullion against which the corporation can borrow operating funds. Elaine purchased the bullion 12 years ago, when its cost was a fraction of its current market value.

Explanation / Answer

Elaine need to recieve 10 addiitonal shares in exchange of $ 210 worth of silver bullion. As 21 is the current market price of the share and any transfer of shareswill happen at the market value of the share currently.

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