Merck & Company is one of the world€™s largest pharmaceutical companies. The following data were taken from the company€™s 2007 annual report.

The following data were taken from public stock-price quotes.
Stock price per share on March 3, 2008: $44.06
(Two months after the end of Merck€™s 2007 fiscal year.)
Stock price per share on March 1, 2007: $43.99
(Two months after the end of Merck€™s 2007 fiscal year.)
Required
a. Compute Merck€™s price-earnings ratio for March 3, 2008, and March 1, 2007.
b. Did the financial markets appear to be more optimistic about Merck€™s future performance on March 1, 2007, or March 3, 2008?
c. Based on the information provided, estimate approximately how many shares of stock Merck had outstanding as of December 31,2007.

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Fiscal Years Ending December 31, 2007 December 31, 2006 Net earnings (in millions) Earnings per share $3,275.4 $1.51 $A, 433.8 S2.04