Required

1. What appears to be the par value, if any, of General Dynamics Corporation common stock? What amount was paid for purchases of stock for the treasury? What was the average price paid per share for these treasury shares?

2. What is the book value per common share of General Dynamics at December 31, 2014? At December 31, 2015?

3. At December 31, 2015, General Dynamics common stock had a market price of $136.36 per share. Briefly discuss why investors might pay so much, relative to the companys book value per share, for General Dynamics Corporation common stock.

4. How does the amount paid for treasury shares calculated in part a differ from the market price at December 31, 2015, included in part c?

Exercise 1 In its 2015 annual report, General Dynamics Corporation showed the following regarding stockholders' equity Consolidated Statements of Shareholders' Equity Common Stock Treasury Stock $ millions Par Surplus LOSS Retained Earnings $21,127 2,965 $482 $2,548 $ (9,396) Accumulated Other Total Comprehensive Shareholders' Equity $(2,932) $11,829 2,965 (888) 419 (3,233) (354) (354) $(3,286) $10,738 December 31, 2014. Net earnings .. Cash dividends declared Equity-based awards Shares purchased Other comprehensive loss... December 31, 2015. (888) 182 237 (3,233) $482 $2,730 $23,204 $(12,392) On December 31, 2015, we had 481,880,634 shares of common stock issued and 312,987,277 shares of common stock outstanding, including unvested restricted stock of 1,391,275 shares. On December 31, 2014, we had 481,880,634 shares of common stock issued and 332,164,097 shares of common stock outstanding. We repurchased 22.8 million of our outstanding shares for $3.2 billion in 2015