E8-45 Analyzing and computing issue price, treasury stock cost, and Shares Outstanding
Following is the stockholders’ equity section of the 2012 Caterpillar Inc., balance sheet.
Stockholders Equity ($ millions)
Common Stock of $1.00 part; Authorized shares: 2,000,000,000;
issued shares (2012, 2011, and 2010 – 814,894,624)
at paid in amount
Treasury stock (2012: 159,846,131; 2011: 167,361,280 shares
and 2010: 176,071,910 sharess) at cost
Profit employed in the business
Accumulated other comprehensive income (loss)
Noncontrolling interests
Total Stockholders Equity 2012 2011 2010 $ 4,481 $ 4,273 $ 3,888
(10,074) (10,281) (10,397)
29,558
25,219
21,384
(6,433)
(6,328)
(4,051)
50
46
40
$ 17,582 $ 12,929 $ 10,864 

a. How many shares of Caterpillar common stock are outstanding at year-end 2012?
b. what does the phrase "at paid-in amount" in the stockholders’ equity section mean?
c. At what average cost has Caterpillar repurchased its stock at year-end 2012?
d. Why would a company such as caterpillar want to repurchase its common stock?
e. Explain how CAT’s "issued shares" remain constant over the three-year period while the dollar amount of its company st lar amount of its company stock account increases.