Following is the stockholders' equity section of the balance sheet for The Procter & Gamble Company along with selected earnings and dividend data. For simplicity, balances for noncontrolling interests have been left out of income and shareholders' equity information.

a. Compute the number of shares outstanding at the end of each fiscal year. Estimate the average number of shares outstanding during 2018. How do these two computations compare?

b. Calculate the average cost per share of the shares held as treasury stock at the end of each fiscal year.

c. In 2018, preferred shareholders elected to convert 4.58 million shares of preferred stock ($39 million book value) into common stock. Rather than issue new shares, the company granted to the preferred shareholders 4.58 million common shares held in treasury stock with a total cost of $33 million. Prepare a journal entry to illustrate how this transaction would have been recorded.

d. P&G has no convertible debt outstanding. What could explain the reported diluted EPS?

e. Calculate P&G's return on common equity (ROCE) for fiscal 2018.

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($ millions except per share amounts) 2018 2017 $ 9,750 Net earnings attributable to Procter & Gamble shareholders. Common dividends..... Preferred dividends Basic net eamings per common share. Diluted net eamings per common share. $15,326 7,057 6,989 265 247 $ 3.75 $ 3.67 $ 5.80 $ 5.59 Shareholders' equity: Convertible class A preferred stock, stated value $1 per share (600 shares authorized) ... $ 967 $ 1,006 Nonvoting class B preferred stock, stated value $1 per share.. Common stock, slated value $1 per share (10,000 shares authorized) shares issued: 2018-4,009.2; 2017-4,009.2.. Additional paid-in capital.. Reserve for ESOP retirement.. Accumulated other comprehensive income (loss) Treasury stock, at cost (shares held: 2018–1,511.2. 2017-1,455.9). Retained earnings - 4,009 63,846 4,009 63,641 (1,204) (14,749) (99,217) (1,249) (14,632) (93,715) .... 98,641 96, 124 .... .. Shareholders' equity attributable to Procter & Gamble shareholders..... $52,293 $55,184