The Balance Sheet Caption for Common Stock Is

question 48

Essay

The balance sheet caption for common stock is:
Common stock, no par value, 15,000,000 shares authorized, 9,200,000 shares issued, 8,900,000 shares outstanding $1,104,000,000
(a.)Calculate the average price at which the shares were issued.
(b.)If these shares had been assigned a stated value of $10 each, show how the above caption would be different.
(c.)Calculate the total amount of cash that would be paid to stockholders if a cash dividend of $1.50 per share were declared.

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Definitions:

Ultimate Consumers

The end-users who purchase products or services for personal use rather than for resale or manufacturing.

Many Uses

A characteristic of products or services that can be utilized in multiple ways or for various purposes, enhancing their appeal.

Production

The process of creating goods and services through the combination of labor, materials, and technology.

Promotional Mix

The combination of marketing strategies and tactics used by a company to promote its products or services, including advertising, sales promotions, public relations, and direct marketing.