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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 40,743 $21,360 Total Merck & Co. Inc. stockholders' equity a. Show the computation of the $1,789 million in the common stock account. 3,577,107,522 shares x $ 0.5 per share is approximately $ 1,788,553,761 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). $ 9.18 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 per share d. How many common shares are outstanding as of December 31, 2018? 2,592,563,543 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. $ 198,097.78 million

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 40,743 $21,360 Total Merck & Co. Inc. stockholders' equity a. Show the computation of the $1,789 million in the common stock account. 3,577,107,522 shares x $ 0.5 per share is approximately $ 1,788,553,761 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). $ 9.18 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 per share d. How many common shares are outstanding as of December 31, 2018? 2,592,563,543 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. $ 198,097.78 million

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
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Following is the stockholders' equity section of the 2018 Merck & Co. Inc. balance sheet. Stockholders' Equity ($ millions, except par value) Common stock, $0.50 par value; 6,500,000 authorized shares; 2018 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. 3,577,107,522 shares x $ 0.5 per share is approximately $ 1,788,553,761 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). $ 9.18 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 per share d. How many common shares are outstanding as of December 31, 2018? 2,592,563,543 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. $ 198,097.78 million
Transcribed Image Text:Following is the stockholders' equity section of the 2018 Merck & Co. Inc. balance sheet. Stockholders' Equity ($ millions, except par value) Common stock, $0.50 par value; 6,500,000 authorized shares; 2018 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. 3,577,107,522 shares x $ 0.5 per share is approximately $ 1,788,553,761 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). $ 9.18 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 per share d. How many common shares are outstanding as of December 31, 2018? 2,592,563,543 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. $ 198,097.78 million
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