E connect ac Ch. 18 Homework Question 6 (ot 0.00 polnts in previous years, Cox T

Question

E connect ac Ch. 18 Homework Question 6 (ot 0.00 polnts in previous years, Cox Transport reacquired 2 million treasury shares at $10 per share and, later, 1 million treasury shares at $16 per share By what amount will Cox's paid-in capital-share repurchase increase if it now sells 2 million treasury shares at $19 per share and determines cost as the weighted-average cost of treasury shares? (Enter your answer in millions (ie, 10,000,000 should be entered as 10).) million References eBook & Resources Difficulty 1 Easy esc 2 3 4 5 0

Explanation / Answer

Weighted average cost per million = (2*10+1*16)/3 = 12 per million

So cost of 2 million share = 12*2 = 24

Reissued value = 19*2 = 38

Paid in capital share repurchase will increase by $14 million

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