Telefnica, S.A. is a Spanish broadband and telecommunications provider with operations in Europe, Latin America, North America

Telefónica, S.A. is a Spanish broadband and telecommunications provider with operations in Europe, Latin America, North America and Asia. The company's statement of changes in equity reported the following:

Notes to the financial statements reveal that the company has net debt of \(€ 53.3\) billion as at December 31, 2012. On March 26, 2013, Bloomberg BusinessWeek reported the following:

Required

a. Consider the treasury shares at December 31, 2012. At what average price did the company repurchase these shares?

b. Use the information above to infer the number of treasury shares sold during fiscal 2012.

c. Use the financial statement effects template to record the sale of treasury shares announced on March 26, 2013.

d. Assume the company uses all the anticipated proceeds to reduce debt. Quantify the effect on the total debt to total equity ratio.

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(In million ) Share capital... Share premium. Reserves... Treasury shares (47,847,810 and 84,209,364 shares) Retained earnings .... Total attributable to equityholders of parent Noncontrolling interests... Total equity ..... December 31, 2012 December 31, 2011 4,551 4,564 460 460 (3,215) (854) (788) (1,782) 19,453 19,248 20,461 7,200 27,661 21,636 5,747 27,383