Following is the stockholders' equity section of the 2018 Merck & Co. Inc. balance sheet. Stockholders'...

 

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Following is the stockholders' equity section of the 2018 Merck & Co. Inc. balance sheet. Stockholders' Equity ($ millions, except par value) 2018 Common stock, $0.50 par value; 6,500,000 authorized shares: 3,577,105.322 issued shares Other paid-in capital Retained earnings $1.789 54,331 59,611 (7.763) $107,968 71,301 $36,667 Accumulated other comprehensive loss Stockholders' equity before deduction for treasury stock Less treasury stock, at cost:984,543,979 shares Total Merck & Co. Inc. stockholders' equity a. Show the computation of the $1.789 million in the common stock account. shares x $ per share is approximately $ million on the balance sheet. b. At what average price were the Merck common shares issued? Note: Round your answers to two decimal places (for example, enter 67.49 for 67.48555). $ per share c. At what average cost was the Merck treasury stock purchased? Note: Round your answers to two decimal places (for example, enter 67.49 for 67.48555). per share d. How many common shares are outstanding as of December 31, 2018? shares outstanding e. Assume Merck's closing stock price is $76.41 per share on December 31, 2018. Use that amount to calculate the company's market cap for that day. million Following is the stockholders' equity section of the 2018 Merck & Co. Inc. balance sheet. Stockholders' Equity ($ millions, except par value) 2018 Common stock, $0.50 par value; 6,500,000 authorized shares: 3,577,105.322 issued shares Other paid-in capital Retained earnings $1.789 54,331 59,611 (7.763) $107,968 71,301 $36,667 Accumulated other comprehensive loss Stockholders' equity before deduction for treasury stock Less treasury stock, at cost:984,543,979 shares Total Merck & Co. Inc. stockholders' equity a. Show the computation of the $1.789 million in the common stock account. shares x $ per share is approximately $ million on the balance sheet. b. At what average price were the Merck common shares issued? Note: Round your answers to two decimal places (for example, enter 67.49 for 67.48555). $ per share c. At what average cost was the Merck treasury stock purchased? Note: Round your answers to two decimal places (for example, enter 67.49 for 67.48555). per share d. How many common shares are outstanding as of December 31, 2018? shares outstanding e. Assume Merck's closing stock price is $76.41 per share on December 31, 2018. Use that amount to calculate the company's market cap for that day. million

Answer rating: 100% (QA)

a To compute the 1789 million in the common stock account you need to find the number of issued shar... View the full answer