Question - Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding
Following is the stockholders' equity section of the Merck & Co., Inc., balance sheet.Merck & Co., Inc. Stockholders' Equity ($ millions)Dec. 31,2014Dec. 31,2013Common stock, $0.50 par valueAuthorized- 6,500,000,000 sharesIssued- 3,789,541,216 shares in 2014 and 2013$1,895 $1,895 Other paid-in capital42,569 42,787 Retained earnings46,021 39,257 Accumulated other comprehensive loss(4,323)(2,197)86,16281,742Less treasury stock, at cost:741,659,837 shares in 2014 and 649,576,808 shares in 201338,258 34,895 Total Merck & Co., Inc. stockholders' equity$47,904 $46,847
a. Explain the derivation of the $1,895 million in the common stock account. Complete the calculation of total amount of shares.
b. Using December 31, 2014 balances, at what average issue price were the Merck common shares issued?
c. At what average cost was the Merck treasury stock as of December 31, 2014?
d. How many common shares are outstanding as of December 31, 2014?