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:

Second Law

Also known as the second law of thermodynamics, it states that the total entropy of an isolated system can never decrease over time, and is central to the direction of heat transfer and the efficiency of heat engines.

Entropy

A measure of the disorder or randomness in a system, often associated with the second law of thermodynamics.

Disorder

A disruption to regular bodily structure and function, leading to disease or ailment.

Heat

A form of energy transfer between two substances or systems due to a temperature difference.