ulate the average price at which the shares were issued. If these shares had been assigned a stated value of $1 each, show how the caption here would be different. If a cash dividend of $0.12 per share were declared, calculate the total amount of cash that would be paid to stockholders What accounts for the difference between issued shares and outstanding shares?
ulate the average price at which the shares were issued. If these shares had been assigned a stated value of $1 each, show how the caption here would be different. If a cash dividend of $0.12 per share were declared, calculate the total amount of cash that would be paid to stockholders What accounts for the difference between issued shares and outstanding shares?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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hello, i need help please
Transcribed Image Text:The balance sheet caption for common stock is the following:
Common stock without par value, 4,100,000 shares authorized,
840,000 shares issued, and 690,000 shares outstanding
$4,000,000
Required:
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 $0.12 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?
X Answer is not complete.
Required A
Required B
Required C
Required D
What accounts for the difference between issued shares and outstanding shares?
Difference between issued shares and outstanding shares
< Required C
Required D
Expert Solution
Step 1
a) Average price of shares issued = Value of issued shares / No of issued shares
c) Amount of Dividend to be paid = Dividend per share * No of issued shares
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