Question

the basu group reacquired 3 million of its shares at $56 per share as treasury stock. last year, for the first time, basu sold 1 million treasury shares at $57 per share.

Answer 1

The question involves understanding the concepts of treasury stock transactions and net profit calculation from buying and selling shares.

Step-by-step explanation:

The question pertains to the repurchase and subsequent sale of treasury stock by the Basu Group, as well as calculations involving stock transactions and net profit. When a company buys back its shares, these become treasury stock, which can later be sold or reissued. Similarly, to calculate net profit from a stock transaction, we deduct the purchase cost and any transaction fees from the total proceeds of the sale.

For instance, if you purchased 1000 shares of Nike at $24.50 per share and sold them at $39.75 per share, with a stock company price per transaction of $9.99, the net profit would be calculated as follows: (1000 * $39.75) - (1000 * $24.50) - $9.99. This formula applies analogously to any stock transaction, including the ones with Panda Express shares, Wal Mart shares, and others discussed in the context.