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 ($ millions, except par value) 2018 Common stock, $0.50 par value; 6,500,000 authorized shares; 3,577,107,522 issued shares $1,789 Other paid-in capital 31,046 Retained earnings 34,063 Accumulated other comprehensive loss (4,436) Stockholders' equity before deduction for treasury stock $62,103 Less treasury stock, at cost: 984,543,979 shares Total Merck & Co. Inc. stockholders' equity 40,743 $21,360 a. Show the computation of the $1,789 million in the common stock account. shares x $ per share is approximately $ million on the balance sheet. 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). 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). per share $ d. How many common shares are outstanding as of December 31, 2018? shares outstanding e. Assume Merck's closing stock price is $76.41 per share on December 31, 2018. Use that amount to calculate the company's market cap for that day. $ million
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 ($ millions, except par value) 2018 Common stock, $0.50 par value; 6,500,000 authorized shares; 3,577,107,522 issued shares $1,789 Other paid-in capital 31,046 Retained earnings 34,063 Accumulated other comprehensive loss (4,436) Stockholders' equity before deduction for treasury stock $62,103 Less treasury stock, at cost: 984,543,979 shares Total Merck & Co. Inc. stockholders' equity 40,743 $21,360 a. Show the computation of the $1,789 million in the common stock account. shares x $ per share is approximately $ million on the balance sheet. 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). 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). per share $ d. How many common shares are outstanding as of December 31, 2018? shares outstanding e. Assume Merck's closing stock price is $76.41 per share on December 31, 2018. Use that amount to calculate the company's market cap for that day. $ million
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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.
Stockholders' Equity ($ millions, except par value)
2018
Common stock, $0.50 par value; 6,500,000 authorized shares;
3,577,107,522 issued shares
$1,789
Other paid-in capital
31,046
Retained earnings
34,063
Accumulated other comprehensive loss
(4,436)
Stockholders' equity before deduction for treasury stock
$62,103
Less treasury stock, at cost: 984,543,979 shares
Total Merck & Co. Inc. stockholders' equity
40,743
$21,360
a. Show the computation of the $1,789 million in the common stock account.
shares x $
per share is approximately $
million on the balance sheet.
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).
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).
per share
$
d. How many common shares are outstanding as of December 31, 2018?
shares outstanding
e. Assume Merck's closing stock price is $76.41 per share on December 31, 2018. Use that amount to calculate the company's market cap for that day.
$
million
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