The balance sheet caption for common stock is the following:

Common stock without par value, 1,500,000 shares authorized, 600,000 shares issued, and 540,000 shares outstanding$8,700,000

a.Calculate the average price at which the shares were issued.

b.If these shares had been assigned a stated value of $1 each, show how the caption here would be different.

c.If a cash dividend of $1.20 per share were declared, calculate the total amount of cash that would be paid to stockholders.

d.What accounts for the difference between issued shares and outstanding shares?

Dividend/Treasury stock