Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some kind of dividend.

The capital accounts for the firm are as follows:

Common stock (2,300,000 shares at $5 par)	$	11,500,000
Capital in excess of par*		4,000,000
Retained earnings		24,500,000
Net worth	$	40,000,000

*The increase in capital in excess of par as a result of a stock dividend is equal to the new shares created times (Market price ? Par value).

The company