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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 |
- What is the maximum dividend per share Caswell-Casey can pay? (Assume capital includes all paid-in capital)
- 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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