Following is the stockholders' equity section of Beam Inc. balance sheet and its statement of Beam Inc. (BEAM) stockholders' equity.

Required

a. Explain the " \(\$ 2.67\) " component of the convertible preferred stock account title.

b. Show (confirm) the computation that yields the \(\$ 734.0\) million common stock at year-end 2012 .

c. At what average price were Beam's common shares issued as of year-end 2012?

d. What is included in Beam's other comprehensive income for 2012? What other items are typically included in other comprehensive income?

e. Explain the \(\$ 12.8\) million tax benefit on exercise of stock options, reported in the statement of stockholders' equity.

Transcribed Image Text:

December 31 (In millions, except per share amounts) Stockholders' equity $2.67 Convertible preferred stock .... Common stock, par value $3.125 per share (750.0 shares authorized; 234.9 shares issued; 160.1 shares outstanding in 2012 and 155.9 shares outstanding in 2011) Paid-in capital..... Accumulated other comprehensive loss Retained earnings... Treasury stock, at cost. Total equity..... 2012 - 734.0 873.7 (186.0) 6,139.7 (2,949.3) $4,612.1