The condensed balance sheet of Hemmer, Inc., follows. (Book value per share, stock issuances, and treasury stock purchases) Assets $400,000 Liabilities _ Stockholders’ equity Total liabilities and Total assets $400,000 stockholders’ equity $140,000 260,000 $400,000 Ten thousand shares of common stock and no preferred stock are presently outstanding. REQUIRED: The following requirements are independent.

a. Compute the book value per common share.

b. Compute the book value per common share if the company issues 5,000 shares of common stock at $32 per share.

c. Compute the book value per common share if the company issues 5,000 shares of common stock at $20 per share.

d. Compute the book value per outstanding share of common stock if the company purchases 5,000 shares of treasury stock at $32 per share.

e. Compute the book value per outstanding share of common stock if the company purchases 5,000 shares of treasury stock at $20 per share.

f. What effect does issuing stock have on the book value of the outstanding shares? Upon what does this effect depend? g. What effect does purchasing treasury stock have on the book value of the outstanding shares? Upon what does this effect depend?