1. A firm has $3,920,000 in its common stock account and $39,200,000 in its paid-in capital account. The firm issued 490,000 shares of common stock. What is the par value of the common stock?
2. A defined benefit pension plan has expected payouts of $10 million per year for 15 years and then $25 million per year over the following 10 years. Actuaries have estimated that the fund can be expected to earn an average of 6 percent on its assets. The fund currently has reserves of $200 million. The plan is underfunded or overfunded? By how many millions?