Reference no: EM131604141

Question - Analyzing and computing issue price, treasury stock cost, and Shares Outstanding

Following is the stockholders' equity section of the 2012 Caterpillar Inc., balance sheet.

Stockholders Equity ($ millions)	2012	2011	2010
Common Stock of $1.00 part; Authorized shares: 2,000,000,000; issued shares (2012, 2011, and 2010 - 814,894,624)at paid in amount	$4,481	$4,273	$3,888
Treasury stock (2012: 159,846,131; 2011: 167,361,280 shares
and 2010: 176,071,910 sharess) at cost	(10,074)	(10,281)	(10,397)
Profit employed in the business	29,558	25,219	21,384
Accumulated other comprehensive income (loss)	(6,433)	(6,328)	(4,051)
Noncontrolling interests	50	46	40
Total Stockholders Equity	$17,582	$12,929	$10,864

Required -

a. How many shares of Caterpillar common stock are outstanding at year-end 2012?

b. What does the phrase "at paid-in amount" in the stockholders' equity section mean?

c. At what average cost has Caterpillar repurchased its stock at year-end 2012?

d. Why would a company such as caterpillar want to repurchase its common stock?

e. Explain how CAT's "issued shares" remain constant over the three-year period while the dollar amount of its company stock account increases.