Anаlyzing аnd Cоmputing Averаge Issue Price and Treasury Stоck CоstFollowing is the stockholders’ equity section from The Coca-Cola Company 2020 balance sheet. (All amounts in millions except par value.) The Coca-Cola Company Shareowners' Equity December 31,2020 Common stock-$0.25 par value; authorized-11,200 shares; issued-7,040 shares $1,760 Capital surplus 17,601 Reinvested earnings 66,555 Accumulated other comprehensive income (loss) (14,601) Treasury stock, at cost-2,738 shares (52,016) Equity attributable to shareowners of The Coca-Cola Company $19,299 a. Compute the number of shares outstanding. {#1} million b. At what average price were the Coca-Cola shares issued? Round answer to two decimal places. ${#2} c. At what average cost were the Coca-Cola treasury stock shares purchased? Round answer to two decimal places. ${#3} per shared. How should treasury stock be treated in calculating EPS? {#4}
Anаlyzing аnd Cоmputing Dividends аnd Effect оf Optiоns ExercisesFollowing is the stockholders’ equity section of the Intuit Inc. balance sheet (dollars in millions, except par value; shares in thousands). Changes in the company’s outstanding shares are due to (1) treasury share purchases by the company and (2) issues of treasury shares for employee stock options. July 31, July 31, Stockholders' Equity ($ millions) 2020 2019 Preferred stock, $0.01 par value Authorized-1,345 shares total; 145 shares designated Series A; 250 shares designated Series B Junior Participating Issued and outstanding - none $ - $ - Common stock, $0.01 par value Authorized-750,000 shares Outstanding-261,740 shares at July 31, 2020 and 260,180 shares at July 31, 2019 3 3 Additional paid-in capital 6,179 5,772 Treasury stock, at cost (11,929) (11,611) Accumulated other comprehensive income (loss) (32) (36) Retained earnings 10,885 9,621 Total stockholders' equity $5,106 $3,749 a. In the fiscal year ended July 31, 2020, Intuit reported net income of $1,826 million. How much did Intuit pay in dividends to its common shareholders? ${#1} million b. In the fiscal year ended July 31, 2020, Intuit repurchased 1,176 thousand of its common shares. How many shares were issued to employees under stock option plans? {#2} thousand shares c. Intuit’s issuance of shares for stock option plans decreased the Additional paid-in capital balance by $31 million. Was the (average) option exercise price greater or less than the (average) amount Intuit paid to acquire the treasury shares that were reissued? The (average) option exercise price was {#3} than the (average) amount intuit paid.