Book value of common stockholders’ equity of CFM, Inc., December 31, 2008
(figures in millions).
The maximum number of shares that can be issued is known as the authorized share capital; for CFM it was 2 billion shares. If management wishes to increase the number of authorized shares, it needs the agreement of shareholders. By December 2008 CFM had issued only 958 million shares, so it could issue over a billion more without further shareholder approval.
Most of the issued shares were held by investors. These shares are said to be issued and outstanding. But CFM has also bought back 223 million shares from investors. Repurchased shares are held in the company’s treasury until they are either canceled or resold. Treasury shares are said to be issued but not outstanding.
The issued shares are entered into the company’s books at their par value. Each CFM share had a par value of $1.00. So the total book value of the issued shares was (958,000,000 shares
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