Following is the stockholders' equity section of the 2012 Caterpillar Inc., balance sheet.

a. How many shares of Caterpillar common stock are outstanding at year-end 2012?

b. What does the phrase "at paid-in amount" in the stockholders' equity section mean?

c. At what average cost has Caterpillar repurchased its stock as of year-end 2012?

d. Why would a company such as Caterpillar want to repurchase its common stock?

e. Explain how CAT's "issued shares" remains constant over the three-year period while the dollar amount of its common stock account increases.

Transcribed Image Text:

Stockholders' Equity ($ millions) Common stock of $1.00 par; Authorized shares: 2,000,000,000; Issued shares (2012, 2011, and 2010-814,894,624) at paid-in amount.... Treasury stock (2012: 159,846,131; 2011: 167,361,280 shares; and 2010: 176,071,910 shares) at cost Profit employed in the business... Accumulated other comprehensive income (loss) Noncontrolling interests.... Total stockholders' equity. 2012 2011 2010 $4,481 $4,273 $3,888 (10,074) 29,558 (6,433) 50 $17,582 (10,281) (10,397) 25,219 21,384 (6,328) (4,051) 46 $12,929 $10,864 40