DenHerder, Inc., reported the following statement of stockholders' equity for the year ended October \(31,19 \mathrm{X} 4\) :

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Answer these questions about DenHerder's stockholders' equity transactions.
1. The income tax rate is 40 percent. How much income before income tax did DenHerder, Inc., report on the income statement?
2. What is the par value of the company's common stock?
3. At what price per share did DenHerder issue its common stock during the year?
4. What was the cost of treasury stock sold during the year? What was the selling price of the treasury stock sold? What was the increase in total stockholders' equity?
5. DenHerder's statement lists the stock transactions in the order they occurred. What was the percentage of the stock dividend? Round to the nearest percentage.

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DENHERDER, INC. STATEMENT OF STOCKHOLDERS' EQUITY YEAR ENDED OCTOBER 31, 19X4 Additional Common Paid-in Retained Treasury (Dollar amounts in millions) Stock Capital Earnings Stock Total Balance, Nov. 1, 19X3. $427 $1,622 $904 $(117) $2,836 Net income.. 336 336 Cash dividends (194) (194) Issuance of stock (10,000,000 shares).. 8 41 49 Stock dividend. 22 113 (135) Sale of treasury stock. 19 28 Balance, Oct. 31, 19X4.. $457 $1,785 $911 $ (98) $3,055