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QUESTION 3 Tries remaining Points our orf 20.00 Flag quesation Analyzing and Com

ID: 2546386 • Letter: Q

Question

QUESTION 3 Tries remaining Points our orf 20.00 Flag quesation Analyzing and Computing Issue Price. Treasury Stock Cost. and Shares Outstanding Following is the stockholders' equity section of the Merck & Co., Inc.. balance sheet. Merck & Co., Inc. Stockholders' Equity ($ millions) Common stock, $0.50 par value Authorized- 6,500,000,000 shares Issued-3,577,103,522 shares in 2014 and 2013 Other paid-in capital Retained earnings Accumulated other comprehensive loss Dec. 31, 2014 Dec. 31, 2013 $1,788 40,423 46,021 (4323) 83,909 $1,788 40,508 39,257 (2,197) 79,356 Less treasury stock, at cost: 738,963,326 shares in 2014 and 649,576,808 shares in 2013 Total Merck & Co., Inc. stockholders equity 35,262 29,591 548,647 a. Explain the derivation of the $1.788 million in the common stock account. Complete the calcu of total amount of shares Enter share amounts in millions ($3,000,000 $3)

Explanation / Answer

b-

amount of common stock-par value

1788

other paid in capital

40423

total amount paid by shareholders

42211

Million

amount of common stock-par value

42211*1000000

42211000000

number of common stock issued

3577103522

average issue price per share

42211000000/3577103522

11.80

c-

total value of treasury stock

1000000*35262

35262000000

average no of shares in treasury stock

(738963326+649576808)/2

694270067

average cost of treasury stock

35262000000/694270067

50.79

D-

no of common share outstanding

total no of common stock issued

3577103522

no of common stock outstanding

738963326

no of common share outstanding

2838140196

b-

amount of common stock-par value

1788

other paid in capital

40423

total amount paid by shareholders

42211

Million

amount of common stock-par value

42211*1000000

42211000000

number of common stock issued

3577103522

average issue price per share

42211000000/3577103522

11.80

c-

total value of treasury stock

1000000*35262

35262000000

average no of shares in treasury stock

(738963326+649576808)/2

694270067

average cost of treasury stock

35262000000/694270067

50.79

D-

no of common share outstanding

total no of common stock issued

3577103522

no of common stock outstanding

738963326

no of common share outstanding

2838140196

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