Question - Analyzing and computing issue price, treasury stock cost, and Shares Outstanding
Following is the stockholders' equity section of the 2012 Caterpillar Inc., balance sheet.
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Stockholders Equity ($ millions)
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2012
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2011
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2010
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Common Stock of $1.00 part; Authorized shares: 2,000,000,000; issued shares (2012, 2011, and 2010 - 814,894,624)at paid in amount
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$4,481
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$4,273
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$3,888
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Treasury stock (2012: 159,846,131; 2011: 167,361,280 shares
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|
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and 2010: 176,071,910 sharess) at cost
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(10,074)
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(10,281)
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(10,397)
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Profit employed in the business
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29,558
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25,219
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21,384
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Accumulated other comprehensive income (loss)
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(6,433)
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(6,328)
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(4,051)
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Noncontrolling interests
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50
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46
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40
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Total Stockholders Equity
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$17,582
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$12,929
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$10,864
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Required -
a. How many shares of Caterpillar common stock are outstanding at year-end 2012?
b. What does the phrase "at paid-in amount" in the stockholders' equity section mean?
c. At what average cost has Caterpillar repurchased its stock at year-end 2012?
d. Why would a company such as caterpillar want to repurchase its common stock?
e. Explain how CAT's "issued shares" remain constant over the three-year period while the dollar amount of its company stock account increases.