The balance sheet caption for common stock is the following:

Common stock without par value, 4,900,000 shares authorized, 790,000 shares issued, and 740,000 shares outstanding	$	3,300,000

Required:

1. Calculate the average price at which the shares were issued.
2. If these shares had been assigned a stated value of $1 each, show how the caption here would be different. ( additional paid in capital and total paid in capital.)
3. If a cash dividend of $0.15 per share were declared, calculate the total amount of cash that would be paid to stockholders.
4. What accounts for the difference between issued shares and outstanding shares?

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Assume that you own 160 shares of $20 par value common stock of a company and the company has a 2-for-1 stock split when the market price per share is $48.

Required:

1. How many shares of common stock will you own after the stock split?
2. What will probably happen to the market price per share of the stock?
3. What will probably happen to the par value per share of the stock?

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