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2 years ago

The par value of common stock must always be equal to its market value on the date the stock is issued.

Business

1 answer:

Lemur [1.5K]2 years ago

5 0

TRUE, the par value of the common stock must always be equal to its market value on the date the stock is issued

The par value of the common stock must always equal the market price on the date the stock was issued. The issuance of common stock affects both paid-in capital and retained earnings. If the preferred stock has a par value of $50 and the dividend is estimated at 8%, the dividend per share will be $4.

Par value is the value of one share of common stock as set forth in the company's articles of incorporation. It usually has nothing to do with the actual value of the stock. In reality it is often lower. Share certificates issued against the shares purchased show the par value. When approving shares, the company can choose whether to assign a par value.

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3 years ago

From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have

Vilka [71]

Answer:

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3 years ago

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5 0

1 year ago

Crane Company issued common stock for proceeds of $389000 during 2019. The company paid dividends of $88000 and issued a long-te

ivann1987 [24]

Answer:

$284,000

Explanation:

Calculation to determine what The financing section of the statement of cash flows will report net cash inflows of

Using this formula

Net cash inflows=Common stock-Dividends-Treasury stock

Let plug in the formula

Net cash inflows= $389000-$88000 -$17000

Net cash inflows=$284,000

Therefore The financing section of the statement of cash flows will report net cash inflows of $284,000

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3 years ago

Turnips and Parsley common stock sells for $39.86 a share at a market rate of return of 9.5 percent. The company just paid their

valkas [14]

Answer:

The rate of growth of their dividend is 6.30%.

Explanation:

This problem requires us to calculate the growth rate at which the dividend will grow. The market value of share and market rate of return is also given in the problem. So we can easily calculate it using market valuation formula.

MV = D(1+G%)/ke

39.86 = 1.2 (1+G%)/(9.5%-G%)

G = 6.30%

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3 years ago