Analyzing IBM’s Stockholders’ Equity The following information is taken from the financial statements of IBM Corporation for the year ended December 31, 1998,

(amounts are in millions, except for number of shares outstanding):

a. What is the average issue price per share of the preferred stock?

b. What is the total par value of the common shares issued?

c. What is the average price at which the common stock was issued?

d. What is the average price paid to acquire the treasury shares held at December 31, 1998?

e. What is the number of common shares outstanding at December 31, 1998?

f. If IBM repurchases an additional $5.0 billion of its own common stock at an average price of $100 per share:
1. What is the number of shares outstanding after the treasury stock purchase?
2. What is the earnings per share after the treasury stock purchase?

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Preferred stock. par value $.01 per share Shares authorized: 150.000.000 $ 247 Shares issued: 2.546.011 Common stock. par value $.50 per share 10.121 Shares authorized: 1.875,000,000 Shares issued: 926.869.052 Retained earnings 10.141 Treasury stock, at cost (962.146 shares) (133) Employee benefits trust (10.000.000 shares) (1.854) Accumulated gains and losses not affecting retained earnings 911 Total stockholders' equity Total liabilities and stockholders' equity $19,433 $86.100 Net income applicable to common shareholders $ 6,308