Unformatted text preview: balance of positive $3,057 million. The treasury stock account has a bal-ance of negative $11,217 million. The sum of these capital accounts is negative. That is, the cash paid for a small fraction of the outstanding shares is larger than the capital raised from issuing all the outstanding shares. What’s going on here? What is the intuition? c. How many shares did Caterpillar repurchase (re-issue) between 2007 and 2008? What is the net effect on Caterpillar’s number of common shares outstanding? What effect do you think these transactions have had on reported earnings per share: positive, negative, or indeterminate from the information in the financial statements? d. Assume Caterpillar grants a 5% stock dividend on 2/5/09. Construct a simple journal entry to account for this action. Caterpillar’s stock price was $51.80 per share on this date....
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- Spring '10
- Corporate Finance, Caterpillar, Caterpillar Inc.