Listed here are the stockholders’ equity sections of three public companies for years ending in 2003 and 2002:

Required:

a. Divide the class in three sections and divide each section into groups of three to five students. Assign each section one of the companies.

Group Tasks Based on the company assigned to your group, answer the following questions.

b. What is the per share par or stated value of the common stock in 2003?

c. What was the average issue price of the common stock for each year?

d. How many shares of stock are outstanding at the end of each year?

e. What is the average cost per share of the treasury stock for 2003?

f. Do the data suggest that your company was profitable in 2003?
g. Can you determine the amount of net income from the information given? What is missing?
h. What is the total stockholders’ equity of your company for each year?

Class Discussion

i. Have each group select a representative to present the information about its company. Compare the share issue price and the par or stated value of the companies.
j. Compare the average issue price to the current market price for each of the companies. Speculate about what might cause the difference.

Transcribed Image Text:

Wendy's (dollar amounts are presented in thousands) Stockholders' Equity Common stock, ?? Stated Value per share, authorized: 200,000,000; 116,760,000 in 2003 and 114,692,000 in 2002 shares issued, respectively Capital in Excess of Stated Value Retained Earnings Acc. Other Comp. Income (Exp.) Treasury Stock, at cost: 2,063,000 in 2003 2003 2002 $ 11,676 $ 10,895 54,310 1,703,488 46,124 (56,992) 0 1,498,607 (60,897) 0