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. Caswell-Cassey Pharmaceutical has a stockholders equity account as shown below. The firms common stock currently sells for $20 per share. Preferred stock $500,000 Common

. Caswell-Cassey Pharmaceutical has a stockholders equity account as shown below. The firms common stock currently sells for $20 per share.

Preferred stock

$500,000

Common stock (2,000,000 shares @ $1 par)

2,000,000

Paid-in-capital in excess of par

10,000,000

Retained earnings

11,600,000

Total stockholders equity

$24,100,000

  1. What is the maximum dividend per share Caswell-Casey can pay? (Assume capital includes all paid-in capital)
  2. Recast the partial balance sheet (the stockholders equity accounts) to show independently

(i) 2 for 1 stock split of the common stock.

(ii) cash dividend of $1.50 per share.

(iii) stock dividend of 5 percent on the common stock.

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