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    Calculations Regarding the Common Stock of a Firm

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    In 2008, Pfizer had 12,000 million shares of common stock authorized, 8,863 million in issue, and 6,746 million outstanding (figures rounded to the nearest million). Its equity account was as follows:

    Common stock $443
    Additional paid-in capital 70,283
    Retained earnings 44,148
    Treasury shares (57,391)

    a.) What was the par value of each share?
    b.) What was the average price at which shares were sold?
    c.) How many shares had been repurchased?
    d.) What was the average price at which the shares were repurchased?
    e.) What was the net book value of Pfizer's common equity?

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    Solution Preview

    In 2008 Pfizer had 12,000 million shares of common stock authorized, 8,863 million in issue, and 6,746 million outstanding (figures rounded to the nearest million). Its equity account was as follows:

    Common stock $443
    Additional paid-in capital 70,283
    Retained earnings 44,148
    Treasury shares (57,391)

    a.) What was the par value of each ...

    Solution Summary

    The calculations regarding the common stock of a firm are provided. The par value of each share are given.

    $2.19

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