The following partial information is taken from the comparat

The following partial information is taken from the comparative balance sheet of Levi Corporation: Shareholders\' equity Common stock, $5 par; 20 million shares authorized; 15 million shares issued and 9 million shares outstanding at 12/31/2018; and million shares issued and Additional paid-in capital on common stock Retained earnings Treasury common stock, at cost, 6 million shares at 12/31/2018 and 4 million shares at 12/31/2017 Total shareholders\' equity shares outstanding at 12/31/2017. What was the average price (rounded to the nearest dollar) of the additional shares issued by Levi in 2018?

Solution

Average price of the additional shares = Proceeds from share issue / Number of additional shares issued

Proceeds from share issue

= Increase in common stock + Increase in additional paid in capital

= [ $15 million - 9 million ] +0

= $6 million

= $6 million

Number of additional shares issued = 6 Million Shares

Therefore, Average price of the additional shares

= $6 million / 6 Million shares

= $1 per share

NOTE:additional paid in capital of common stock and retained earning is not given