Analyzing and Computing Average Issue Price and Treasury Stock Cost and Market Ahold is a major…
Analyzing and Computing Average Issue Price and Treasury Stock Cost and Market
Ahold is a major international supermarket operator based in Zaandam, Netherlands. Following is information taken from Ahold's financial statements prepared in accordance with IFRS.
Footnotes to financial statements disclose the following: At December 30, 2012, and January 1, 2012, there were 1,700,000,000 shares authorized, and 1,060,988,000 and 1,100,888 shares issued respectively. During 20 12, Ahold repurchased 26,832,085 shares for a total consideration of €277 million, and the company cance lled some of the treasury shares held. At year-end 2012, the company had treasury stock of 22,481,000 shares.
a. How many shares are authorized at December 30, 20 12?
b. How many shares are issued at December 30, 20 12? At what average price were these shares issued December 30, 2012?
c. At what average price did the company repurchase treasury shares during 2012?
d. How many shares are outstanding as of December 30, 2012?
e. At December 30, 2012, the share price for Ahold was € 10.14. Compute the company's market cap italization on that date. How does this compare to the net book value of equity?