Question

On its 2018 balance sheet, Walgreen Co, reports treasury stock at cost of $3,114 million. The company has a total of 1,028,180,150 shares issued and 946,595,578 shares outstanding. What average price did Walgreen pay for treasury shares

Answer 1

$38.17

Step-by-step explanation:

We know that

Outstanding shares = Issued shares - treasury shares

So, the treasure shares would be

= Issued shares - Outstanding shares

= 1,028,180,150 - 946,595,578

= 81,584,572 shares

The average price would be

= Cost of treasury stock ÷ treasure shares

= $3,114,000,000 ÷ 81,584,572 shares

= $38.17

We simply divided the treasury stock cost by its shares