Reference no: EM131698832
Question - Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding
Following is the stockholders' equity section of the Merck & Co., Inc., balance sheet.Merck & Co., Inc. Stockholders' Equity ($ millions)Dec. 31,2014Dec. 31,2013Common stock, $0.50 par valueAuthorized- 6,500,000,000 sharesIssued- 3,789,541,216 shares in 2014 and 2013$1,895 $1,895 Other paid-in capital42,569 42,787 Retained earnings46,021 39,257 Accumulated other comprehensive loss(4,323)(2,197)86,16281,742Less treasury stock, at cost:741,659,837 shares in 2014 and 649,576,808 shares in 201338,258 34,895 Total Merck & Co., Inc. stockholders' equity$47,904 $46,847
a. Explain the derivation of the $1,895 million in the common stock account. Complete the calculation of total amount of shares.
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