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Know how many questions to expect in a section. There are about 500,000 buffalo in North America...and I expect to see each one of them at the next family reunion. (Uncle Abe, I'm looking at you.)
  • To answer these questions, refer to the following information:

    A company has 4 million shares authorized. It initially issued 3 million and then repurchased 500,000.

    • 1.

      How many shares does the company have outstanding?

    • 2.

      What if instead the company retired the 500,000 repurchased shares. How many shares are outstanding?

    • 3.

      If the company retired the repurchased stock, how many shares are authorized?