A corporate charter specifies that the company may sell up t

A corporate charter specifies that the company may sell up to 21 million shares of stock. The company sells 13 million shares to investors and later buys back 3.5 million shares. The current number of outstanding shares after these transactions have been accounted for is: 9.5 million shares. 11.0 million shares. O 8.0 million shares. O 21.0 million shares.

Solution

Number of Outstanding Shares = Shares Issued - Shares Bought Back

= 13 Million - 3.5 Million

= 9.5 Million

Hence, the correct answer is 9.5 million shares.