Answer:
$600 million
Explanation:
On January 1, 2020, the balance of common stock & APIC is derived as follows:
Common stock & APIC = Paid-In Capital + Capital raised from selling 50 million shares at $20 each - Treasury Stock
This gives:
Paid-In Capital = $500 million
Issuance of 50 million shares at $20 each amounts to:
Treasury Stock involves buying back 20 million shares priced at $45 each.
Inserting the numbers leads to:
Common stock & APIC = $500 million + $1000 million - (20 million shares × $45 each)
Therefore, Common stock & APIC = $1500 million - $900 million = $600 million
Answer:
Dog
Explanation:
Dog products are categorized as those that currently possess a low market share along with minimal expected future growth. These products do not yield sufficient cash flow but require significant capital investments that could otherwise support cash cows or star products for better returns. Polaroid has seen a decline in its market share and is no longer in demand, indicating no predicted future growth. Thus, it is classified as a Dog product within the BCG Matrix.