Why common stock is usually not issued at a price that is less than par value?
Question:
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 69% (13 reviews)
Common stock issued ...View the full answer
Answered By
Ajeet Singh
Hi there! Are you looking for a committed, reliable, and enthusiastic tutor? Well, teaching and learning are more of a second nature to me, having been raised by parents who are both teachers. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students. Areas of interest: Business, accounting, Project management, sociology, technology, computers, English, linguistics, media, philosophy, political science, statistics, data science, Excel, psychology, art, history, health education, gender studies, cultural studies, ethics, religion. I am also decent with math(s) & Programming. If you have a project you think I can take on, please feel welcome to invite me, and I'm going to check it out!
5.00+
4+ Reviews
24+ Question Solved
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Question Posted:
Students also viewed these Accounting questions
-
Why are ordinary shares usually not issued at a price that is less than par value?
-
A 168-day, $100,000 T-bill was initially issued at a price that would yield the buyer 0.446%. If the yield required by the market remains at 0.446%, how many days before its maturity date will the...
-
Question 4 [7 marks] Part a) (3 marks) Calculate the statistic, set up the rejection region, draw the sampling distribution and interpret the result, Ho: H: Given that: -10, n-100, X-10, a-0.05. -10...
-
Use f(x) and g(x) to find a formula for each expression. Identify its domain. (a) (f + g)(x) (c) (fg)(x) (b) (f- g)(x) (d) (f/g)(x)
-
On September 30, 2017, Ericson Company negotiated a two-year, 1,000,000 dudek loan from a foreign bank at an interest rate of 2 percent per year. It makes interest payments annually on September 30...
-
Suppose that the burning times of electric light bulbs approximate a normal curve with a mean of 1200 hours and a standard deviation of 120 hours. What proportion of lights burn for (a) Less than 960...
-
As a class exercise, identify three xPM projects and write the POS for one of them.
-
James and Megan Webb recently purchased a home for $300,000. The home is insured under an HO-3 policy for $250,000 with no endorsements attached. Megan collects antiques for a hobby. James has a...
-
Flynn Company purchased 70 Rinehart Company 12%, 10-year, $1,000 bonds on January 1, 2015, for $70,000. The bonds pay interest semiannually on July 1 and January 1. On January 1, 2016, after receipt...
-
Priti is a trader. Her financial year ends on 31 March. Her trial balance on 31 March 204 was as follows: Additional information: 1. At 31 March 204: Inventory was valued at $41,050. Commission...
-
Why is PepsiCo not a partnership?
-
How many shares of treasury stock did PepsiCo have at December 29, 2007, and at December 30, 2006?
-
1. A ________ number has the form a + bi, where a 0, b = 0. 2. An ________ number has the form a + bi, where a 0, b 0. 3. A ________ ________ number has the form a + bi, where a = 0, b 0. 4. The...
-
22. Lead(II) iodide, PbI 2 , is a slightly solublesalt with a K SP value of9.8 x 10 -9 . The equation for itsdissociation in water is PbI 2 (s) Pb 2+ (aq) + 2I - (aq) What is the molar solubility of...
-
The spot exchange rate is $0.0113 per Japanese yen. If the dollar depreciates by 7%, how many dollars would be required to buy a yen?
-
LRCX just paid $3.4 in dividend and the dividend growth rate has been around 9% a years. If the current price is $260 a share, what is your expected return for buying the stock?
-
Restore Company manufactures jeans. In June, Restore made 500 pairs of jeans, but had budgeted production at 800 pairs of jeans. The allocation base for overhead costs is direct labor hours. The...
-
Explain what differential costs mean. How are fixed costs and variable costs related to differential costs?Provide an example of differentials costs by considering a personal or professional decision...
-
2.326 In Exercises 2932, find the levels of the confidence intervals that have the given critical values.
-
On July 1, 2011, Flashlight Corporation sold equipment it had recently purchased to an unaffiliated company for $480,000. The equipment had a book value on Flashlights books of $390,000 and a...
-
(A) Minimize and maximize subject to (B) Minimize and maximize subject to z=3x + y 2x + y 20 10x + y 36 2 + 5y 36 x, y 0
-
On October 1, Little Tommy Corporations stockholders equity is as follows. Common stock, $5 par value.............. $400,000 Paid-in capital in excess of parcommon stock........ 25,000 Retained...
-
During 2012, Margan Corporation had the following transactions and events.1. Declared a cash dividend.2. Issued par value common stock for cash at par value.3. Completed a 2-for-1 stock split in...
-
On January 1, 2012, Barb Corporation had retained earnings of $550,000. During the year, Barb had the following selected transactions. 1. Declared cash dividends $120,000. 2. Corrected overstatement...
-
Emily was hired as the Chief Technology Officer (CTO) of Delta Corporation, a privately-owned company in the telecommunications sector, effective February 1, 2022. Throughout the fiscal year 2023,...
-
Compute Quick Ratio: Requirements: From the balance sheet data, where: Quick Assets: $120,000 Current Liabilities: $50,000 Calculate the quick ratio. Express the quick ratio as a numerical value....
-
The Starbucks Corporation operates a chain of coffee shops worldwide. Last month, one of its locations produced 5,000 cups of coffee at a total cost of $10,000. When production increased to 6,000...
Study smarter with the SolutionInn App