Narrative:

Happy Harry Hoskins and Crabby Cynthia Crowders are organizing Red Lodge Metals Unlimited, Inc., to undertake a high risk gold mining venture in Canada. Mr$.$ Hoskins and Ms$.$ Crowders tentatively plan to request authorization for $400,000,000$ shares of common stock to be sold to the general public.

Mr$.$ Hoskins and Ms$.$ Crowders have decided to establish par value at $$0\mathrm{.}03$ per share in order to appeal to a wide variety of potential investors. They believe that investors would be more willing to invest in a company if investors received a large quantity of shares for what might appear to be a "bargain" price.

Discussion Questions:

What are the SEC responsibilities?

What is a company's requirements for stock issuance?

According to the information what is the value of the company?

What is the rate of return?