Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding

Following is the stockholders$$ equity section of the $2018$ Merck & Co$.$ Inc. balance sheet.

Stockholders$$ Equity $($$ millions, except par value$)2018$

Common stock, $$0\mathrm{.}50$ par value; $6,500,000$ authorized shares;

$3,577,105,722$ issued shares $$1,789$

Other paid$-$in capital $46,570$

Retained earnings $51,095$

Accumulated other comprehensive loss $(6,654)$

Stockholders$$ equity before deduction for treasury stock $$92,800$

Less treasury stock, at cost:$984,543,979$ shares $61,115$

Total Merck & Co$.$ Inc. stockholders$$ equity $$31,685$

a$.$ Show the computation of the $$1,789$ million in the common stock account.

Answer

shares x $Answer

per share is approximately $Answer

million on the balance sheet.

b$.$ At what average price were the Merck common shares issued?

Note: Round your answers to two decimal places $($for example, enter $67\mathrm{.}49$ for $67\mathrm{.}48555).$

$Answer

per share

c$.$ At what average cost was the Merck treasury stock purchased?

Note: Round your answers to two decimal places $($for example, enter $67\mathrm{.}49$ for $67\mathrm{.}48555).$

$Answer

per share

d$.$ How many common shares are outstanding as of December $31,2018?$ Answer

shares outstanding

e$.$ Assume Merck$$s closing stock price is $$76\mathrm{.}41$ per share on December $31,2018.$ Use that amount to calculate the company$$s market cap for that day.

$Answer

million