Analyzing and Interpreting Stockholders' Equity and EPS 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. $ millions except per share amounts Net earnings attributable to Procter & Gamble shareholders 2018 2017 $9.750 $15,326 Common dividends. 7.057 6.989 265 247 Preferred dividends Basic net earnings per common share Diluted net earnings per common share Shareholders' equity: Convertible class A preferred stock, stated value $1 per share Common stock, stated value $1 per share (shares issued: 2018-4,009.2; 2017-4,009.2) Additional paid-in capital Treasury stock, at cost (shares held: 2018--1,511.2, 2017--1.455.9) Retained earnings Accumulated other comprehensive income/(loss) Reserve for ESOP retirement Shareholders' equity attributable to Procter & Gamble shareholders $3.75 $5.80 $3.67 $5.59 $967 $1,006 4,009 4,009 63,846 63.641 (99.217) (93.715) 98.6411 96,124 (14,749) (14,632) (1,204) (1.249) $52,293 $55,184 a. Compute the number of common shares outstanding at the end of each fiscal year. Estimate the average number of shares outstanding during 2018. Hint: To compute the 2018 Average, use the equation for Basic EPS and solve for the denominator (average common shares outstanding). Do not take an average of 2017 and 2018 shares outstanding. Note: Round to one decimal place. 2018 2017 2018 Average million million million b. Calculate the average cost per share of the shares held as treasury stock at the end of each fiscal year. Round to two decimal places. 2018 $ 2017 $ 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 4.58 million shares held in treasury stock to the preferred shareholders, with a total cost of $33 million. Prepare a journal entry to illustrate how this transaction would have been recorded. (Hint: use the cost per share for 2018 determined in b.) Enter answers in millions. Round to the nearest million. Description Additional paid-in capital Debit Credit d. Calculate P&G's return on common equity (ROCE) for fiscal 2018. Round to one decimal place. 2018 96