Question

The charter of Vista West Corporation specifies that it is authorized to issue 209,000 shares of common stock. Since the company was incorporated, it has sold a total of 146,000 shares (at $16 per share) to the public. It has bought back a total of 12,000. The par value of the stock is $5. When the stock was bought back from the public, the market price was $22. Determine the authorized shares.

Answer 1

209,000 shares

Step-by-step explanation:

The company is authorized to issue 209,000 shares which represent maximum shares that can be issued. Authorized shares is the maximum number of shares a company can issue and this is stated in the corporate charter.