Question

At what average cost has Caterpillar repurchased its stock as of year-end 2016?

Please explain answer choice in detail.

5. Assume the following is the stockholders' equity section of the 2016 Caterpillar, Inc., balance sheet. 2016 2015 2014 $1,859 $1,231 $1,059 Stockholders' Equity (5 millions) Common stock of $1.00 par value; Authorized shares: 900,000,000; Issued shares (2016, 2015, and 2014 814,894,624) at paid-in amount Treasury stock (2016144,027,405 shares; 2015- 129,020,726 shares; 2014—127,370,544 shares) at cost Profit employed in the business Accumulated other comprehensive income.............. Total stockholders' equity.. (4,637) 11,808 (598) $8,432 (3,277) 9,937 (424) $7.467 (2,914) 8,450 (517) $6,078 At what average cost has Caterpillar repurchased its stock as of year-end 2016? a. $ 2.07 b. $ 2.28 C. $32.20 d. $10.35 144,627, 405

Answer 1

Answer : c. 32.20

Calculated as

No. of shares purchased in 2016 = 144027405

Cost of Total repurchased stock = $4637 Million

Average cost per share purchased = $4637 million / 144027405 = $32.20 per share

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