The following partial information is taken from the comparative balance sheet of Levi Corporation: Shareholders’...

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The following partial information is taken from the comparative balance sheet of Levi Corporation: Shareholders’...

The following partial information is taken from the comparative balance sheet of Levi Corporation:

Shareholders’ equity	12/31/2021			12/31/2020
Common stock, $5 par; 33 million shares authorized; 28 million shares issued and 23 million shares outstanding at 12/31/2021; and ____million shares issued and ____shares outstanding at 12/31/2020.	$	140	million	$	115	million
Additional paid-in capital on common stock		520	million		403	million
Retained earnings		195	million		157	million
Treasury common stock, at cost, 5 million shares at 12/31/2021 and 2 million shares at 12/31/2020		(79	million)		(46	million)
Total shareholders’ equity	$	776	million	$	629	million

What was the average price of the additional treasury shares purchased by Levi during 2021? (Round your answer to 2 decimal places.)

Choices are

23 per share

15.80 per share

None of he choices are correct

11.00 per share

business accounting

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Answer 1

Answer #1

Answer

Additional cost of Treasury Stock purchased = $ 79 million - $ 46 million = $ 33 millions
Additional treasury stock shares purchased = 5 million share – 2 million shares = 3 million shares
Average price of additional treasury shares
= $ 33 million / 3 million shares
= $ 11 per share
Correct Answer = Option #4: $ 11.00 per share.

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Answer 2

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