Ef 121. Analyzing and Computing Average Issue Price and Treasury Stock CostFollowing is the stockholders' equity section from the The Coca-Cola Company year-end balance sheet. (All amounts in millions except par value.)The Coca-Cola Company Shareowners' EquityCommon stock-$0.25 par value; authorized-11,422 shares; issued-7,163 sharesCapital surplusReinvested earningsAccumulated other comprehensive income (loss)Treasury stock, at cost-2,773 sharesEquity attributable to shareowners of The Coca-Cola CompanyDecember 31$1,85914.00763,853(5,999)(42,670)$31,050a. Compute the number of shares outstanding. 4,390 ✔ millionb. At what average price were the Coca-Cola shares issued? Round answer to two decimal places. $ 2.21c. At what average cost were the Coca-Cola treasury stock shares purchased? Round answer to two decimal places. $ 2.21d. How should treasury stock be treated in calculating EPS?OThe number of treasury stock shares is subtracted from the denominator in computing EPS.✔OThe number of treasury stock shares is added to the denominator in computing EPS.OThe treasury stock balance is subtracted from the numerator in computing EPS.OThe treasury stock balance is added to the numerator in computing EPS.X

Earnings per share represents the net earnings of the company held in hands of each stockholders of…

Answered: c. At what average cost were the…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.12MCP

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The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.
The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Includes both state and federal taxes. Brief Exercise 15-20 Calculating the Average Common Stockholders Equity and the Return on Stockholders Equity Refer to the information for Somerville Company on the previous pages. Required: Note: Round answers to four decimal places. 1. Calculate the average common stockholders equity. 2. Calculate the return on stockholders equity.
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
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c. At what average cost were the Coca-Cola treasury stock shares purchased? Round answer to two decimal places. $ 2.21 x