On January 1, 2018, Juniper Corporation issued 60,000 shares of its total 200,000 authorized shares of $4 par value common stock for $8 per share. On December 31, 2018, Juniper Corporations' common stock is trading at 12$ per share. Juniper did not issue any more common stock in 2018. Assume Juniper Corporation decides to issue an additional 1,000 shares of its common stock on December 31, 2018. 

How will the above increase in value affect Juniper and why? 

a) Juniper can issue the 1,000 shares at a higher price than the initial 60,000 shares

b) juniper can sell the 1,000 shares for $12 each as well as collect an additional $4 per share for each of the 60,000 shares sold initially 

c) Juniper reports a gain of $4 per share on all stock sold during the year 

d) paid-in capital at the end of 2018 will be $732,000 (i.e., 61,000 shares times $12 per share).

Answer rating: 100% (QA)

Correct answer A Juniper can issue the 1000 shares at a higher price than the in... View the full answer