Group Assignment Missing information

Listed here are the stockholders’ equity sections of three public companies for years ending in 2007 and 2006.

2007

2006

Wendy’s (dollar amounts are presented in thousands)

Stockholders’ Equity

Common stock, ?? Stated Value per share, authorized:

200,000,000; 130,241,000 in 2007 and 129,548,000 in

2006 shares issued, respectively

$ 13,024

$ 12,955

Capital in Excess of Stated Value

1,110,363

1,089,825

Retained Earnings

1,287,963

1,241,489

Acc. Other Comp. Income (Exp.)

9,959

(13,446)

Treasury Stock, at cost: (42,844,000 shares in 2007;

33,847,000 shares in 2006)

(1,617,178)

1,319,146

Coca Cola (amounts are presented in millions)

Stockholders’ Equity

Common Stock, ?? Par Value per share, authorized:

5,600; issued: 3,519 shares in 2007

and 3,511 shares in 2006

$ 880

$ 878

Capital Surplus

7,378

5,983

Reinvested Earnings

36,235

33,468

Acc. Other Comp. Inc. (loss)

626

(1,291)

Treasury Stock, at cost: (1,201 shares in 2007;

1,193 shares in 2006)

(23,375)

(22,118)

Harley Davidson (dollar amounts are presented in thousands)

Stockholders’ Equity

Common stock, ?? Par Value per share, authorized:

800,000,000, issued: 335,211,201 in 2007 and

334,328,193 shares in 2006

3,352

3,343

Additional Paid in Capital

812,224

766,382

Retained Earnings

6,117,567

5,460,629

Acc. Other Comp. Inc. (loss)

(137,258)

(206,662)

Treasury Stock, at cost: 96,725,399 for 2007 and

76,275,837 for 2006

(4,420,394)

(3,266,955)

Required

a. Divide the class in three sections and divide each section into groups of three to five students.

Assign each section one of the companies.

Group Tasks

Based on the company assigned to your group, answer the following questions.

b. What is the per share par or stated value of the common stock in 2006?

c. What was the average issue price of the common stock for each year?

d. How many shares of stock are outstanding at the end of each year?

e. What is the average cost per share of the treasury stock for 2006?

f. Do the data suggest that your company was profitable in 2006?

g. Can you determine the amount of net income from the information given? What is missing?

h. What is the total stockholders’ equity of your company for each year?

Class Discussion

i. Have each group select a representative to present the information about its company.

Compare the share issue price and the par or stated value of the companies.

j. Compare the average issue price to the current market price for each of the companies.

Speculate about what might cause the difference.