Analyzing Convertible Preferred Stock

Question E8-47

a. How many shares b. What does the phrase "at paid-in amount" in the common stock account me c. At what average cost has Caterpillar repurchased its stock as of year-end 20152 d. Why would a company such as Caterpillar want to repurchase its common sto e. Explain how CAT's "issued shares" remains constant over the three-year period of CaterpiiU an? ck? while the amount of its common stock account increases. 7. Analyzing Convertible Preferred Stock LO7, 8 orporation XRX) port Xerox Corp. reports the following stockholders' equity information in its 10-K re December 31 Shareholders' Equity in millions, except par value Series A convertible preferred stock Common stock, $1 par value. .. . BC 2015 2014 349 3 1,013 1,124 3,017 430 Treasury stock, at cost... earnings . Accumulated other comprehensive loss .. . . . . . . . . . . . . . . . . . . . . (4,642 1 Preferred Stock As of December 31, 2015, we had one class of preferred st We are authorized to issue approximately 22 million shares of cumulative pre par value per share. Series A Convertible Preferred Stock: We have issued 300,000 shares of Series perpetual preferred stock with an aggregate liquidation preference of $300 and atB value of $349. The convertible preferred stock pays guarter cash did per year $24 ner randi A convert and an initial dividends at a ra a. How many shares b. What does the phrase "at paid-in amount" in the common stock account me c. At what average cost has Caterpillar repurchased its stock as of year-end 20152 d. Why would a company such as Caterpillar want to repurchase its common sto e. Explain how CAT's "issued shares" remains constant over the three-year period of CaterpiiU an? ck? while the amount of its common stock account increases. 7. Analyzing Convertible Preferred Stock LO7, 8 orporation XRX) port Xerox Corp. reports the following stockholders' equity information in its 10-K re December 31 Shareholders' Equity in millions, except par value Series A convertible preferred stock Common stock, $1 par value. .. . BC 2015 2014 349 3 1,013 1,124 3,017 430 Treasury stock, at cost... earnings . Accumulated other comprehensive loss .. . . . . . . . . . . . . . . . . . . . . (4,642 1 Preferred Stock As of December 31, 2015, we had one class of preferred st We are authorized to issue approximately 22 million shares of cumulative pre par value per share. Series A Convertible Preferred Stock: We have issued 300,000 shares of Series perpetual preferred stock with an aggregate liquidation preference of $300 and atB value of $349. The convertible preferred stock pays guarter cash did per year $24 ner randi A convert and an initial dividends at a ra