1. CaswellCassey Pharmaceutical has a stockholders' equity account as shown below. The firm's common stock currently sells for $20 per share.

Preferred stock $ 500,000

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

Paidincapital in excess of par 10,000,000

Retained earnings 11,600,000 ___________

Total stockholders' equity $24,100,000

a. What is the maximum dividend per share CaswellCasey can pay? (Assume capital includes all paidin capital.)

b. Recast the partial balance sheet (the stockholders' equity accounts) to show independently

1. a 2 for 1 stock split of the common stock.

2. a cash dividend of $1.50 per share.

3. a stock dividend of 5% on the common stock.

c. At what price would you expect the CaswellCassey stock to sell after

1. the stock split?

2. the stock dividend?