Lee Industries: Understanding Par Value and Share Repurchase

How is the par value of each share calculated?

a) Calculation of Par Value:

How many shares did Lee Industries repurchase during the current year?

b) Calculation of Repurchased Shares:

Calculation of Par Value:

The par value is the nominal value assigned to each share of stock. In this case, each share has a par value of $0.50.

Calculation of Repurchased Shares:

The company repurchased 4,000 shares during the fourth quarter of the current year.

In accounting and finance, the concept of par value plays a crucial role in understanding the value of shares issued by a company. Par value represents the nominal value assigned to each share of stock. In the case of Lee Industries, each share has a par value of $0.50.

To calculate the total par value of the shares issued by Lee Industries, we can use the following formula:

Par Value = Par Value per Share * Number of Shares

Par Value = $0.50 * 250,000

Par Value = $125,000

Therefore, the total par value of the shares issued by Lee Industries is $125,000. This amount represents the nominal value of the shares based on the par value assigned by the company.

On the other hand, the company repurchased 4,000 shares during the fourth quarter of the current year. The act of repurchasing shares can have various implications for the company's capital structure and financial performance. Understanding the number of repurchased shares helps in assessing the company's utilization of its financial resources.

Overall, the calculation of par value and the repurchase of shares are important aspects of corporate finance that provide insights into the financial health and strategies of a company like Lee Industries.