Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding The following is the stockholders' equity section from Chipotle Mexican Grill, Inc.'s balance sheet (in thousands, except per share data).

								December
Shareholders' Equity								31, 2014
Preferred stock, $0.01 par value, 600,000 shares authorized, no shares issued as of								$ -
December 31, 2014
Common stock, $0.01 par value, 230,000 shares authorized, and 36,945 shares
issued as of December 31, 2014								369
Additional paid-in capital								1,129,003
Treasury stock, at cost, 4,476 common shares at December 31, 2014								(749,885)
Accumulated other comprehensive income								(429)
Retained earnings								1,722,271
Total shareholders' equity								$2,101,329

a. Show the computation to derive the $369 thousand for common stock. Answer

shares X $Answer = Answer thousand (round to the nearest whole number)

b. At what average price has Chipotle issued its common stock? Round to two decimal places. $Answer

c. How many shares of Chipotle common stock are outstanding as of December 31, 2014? Answer

thousand

d. At what average cost has Chipotle repurchased its treasury stock as of December 31, 2014? Round to two decimal places. $Answer

e. Select the incorrect reason as to why a company would want to repurchase its own stock.

To offset the dilutive effects of shares issued to employees under stock option plans.

To raise capital for fund future long-term projects.

To mitigate a takeover threat by concentrating the remaining shares in "friendly hands."

To send a signal to the market that the company feels its shares are undervalued.