Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding Following is the stockholders' equity section of the 2018 Merck & Co. Inc. balance sheet. Stockholders' Equity (5 millions, except par value) Common stock, $0.50 par value; 6,500,000 authorized shares; 3,577,105,722 issued shares Other paid-in capital Retained earnings Accumulated other comprehensive loss Stockholders' equity before deduction for treasury stock Less treasury stock, at cost 984,543,979 shares Total Merck & Co. inc. stockholders' equity a. Show the computation of 100 2018 $1,789 46,570 51,095 (6,654) $92,800 61,115 $31,685
Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding Following is the stockholders' equity section of the 2018 Merck & Co. Inc. balance sheet. Stockholders' Equity (5 millions, except par value) Common stock, $0.50 par value; 6,500,000 authorized shares; 3,577,105,722 issued shares Other paid-in capital Retained earnings Accumulated other comprehensive loss Stockholders' equity before deduction for treasury stock Less treasury stock, at cost 984,543,979 shares Total Merck & Co. inc. stockholders' equity a. Show the computation of 100 2018 $1,789 46,570 51,095 (6,654) $92,800 61,115 $31,685
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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B3.
Transcribed Image Text:Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding
Following is the stockholders' equity section of the 2018 Merck & Co. Inc. balance sheet.
2018
Stockholders' Equity (5 millions, except par value)
Common stock, $0.50 par value; 6,500,000 authorized shares
3,577,105,722 issued shares
Other paid-in capital
Retained earnings
Accumulated other comprehensive loss
Stockholders' equity before deduction for treasury stock
Less treasury stock, at cost 984,543,979 shares
Total Merck & Co. Inc. stockholders' equity
3,577,105,722
$1,789
46,570
51,095
a. Show the computation of the $1,789 million in the common stock account.
shares x $ 0.5
(6,654)
$92,800
61,115
$31,685
per share rounded down to $ 1,788
b. At what average price were the Merck common shares issued?
Note: Round your answers to two decimal places (for example, enter 67.49 for 67.48555).
$9.18 x per share
c. At what average cost was the Merck treasury stock purchased?
Note: Round your answers to two decimal places (for example, enter 67.49 for 67.48555).
$ 41.38 x per share
d. How many common shares are outstanding as of December 31, 2018? 76.41
million on the balance sheet.
x shares outstanding
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