In 2008 Pfizer had 12,000 million shares of common stock authorized, 8,863 million in issue, and 6,746
Question:
In 2008 Pfizer had 12,000 million shares of common stock authorized, 8,863 million in issue, and 6,746 million outstanding (figures rounded to the nearest million). Its equity account was as follows:
Common stock ............................ $ 443
Additional paid-in capital ......... 70,283
Retained earnings ..................... 44,148
Treasury shares ....................... (57,391)
a. What was the par value of each share?
b. What was the average price at which shares were sold?
c. How many shares had been repurchased?
d. What was the average price at which the shares were repurchased?
e. What was the net book value of Pfizer’s common equity?
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Step by Step Answer:
a Par value is 005 per share which is computed as follows 443 million8863 million shares b The s...View the full answer
Principles of Corporate Finance
ISBN: 978-0077404895
10th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
