Ko Walla Bhanga Chareya

BRIEF CASES

HARVARD BUSINESS PUBLISHING

4203

JUNE 14, 2010

CRAIG CHAPMAN

Jimmy Fu and Moog, Inc.:

Understanding Shareholders’ Equ

This case talks about the shareholders’ equity, stock police and stock options by telling the story of Jimmy Fu and Moog, Inc.

Assignment Questions:

1

　 | 　 | changes in equity | value of Jimmy's stock and options | changes in shares | valuation for balance sheet |

　 | transactions | | | | |

record on March 18, 2007, distributed April 1, 2007 | three-for-two stock split of its Class A and Class B common stock effected by a 50% stock distribution | no change in amount, but the additional paid-in capital is transferred to the Common Stock | increase | increase | no change |

May and June 2007 | company purchased 122,199 Class A Shares of $29.7 per share | equity will decrease by $3,332,310 as well as cash | increase(less shares on the market, so the price of each share will increase, so does the value of Jimmy's stock and options) | decrease | assets and equity decrease |

5-Jul-07 | employees purchased 147,017 Class A Shares by exercising options, price bought by company is equal to price exercised | equity will increase by $748,317 as well as cash | decrease(if other people exercising the call option, it shows people lost the confident that the stock will keep growing and they will sell stocks after exercising, then the stock price will go down) | increase | equity will increase by $748,317 as well as cash |

between May and August,2007 | convert 11,545 Class B into Class A | no change | no change | no change | no change |

end of 2007 | net income of $64.79, an additional loss associated with foreign currency translation of $16.50 | equity will increase by $48.29($64.79-16.50) millions | it depends on whether the net income is bigger than the expectation, and how the stock price will be influenced. | no change | asset increase by $48.29 as well as equity |

2

the Shareholders' Equity section of...