A company issues 40,000 shares of $5 par valuecommon stock at $9 per share.As a result of this transaction, how much does the Paid-in Capital increase by?A. $160,000B. $200,000C. $180,000D. $220,000

Step 1: Definition of Paid-in CapitalPaid-in Capital (also known as Additional Paid-in Capital -…

Answered: A company issues 40,000 shares of $5…

Corporate Fin Focused Approach

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ISBN:9781285660516

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Chapter14: Distributions To Shareholders: Dividends And Repurchases

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A company issues 40,000 shares of $5 par value common stock at $9 per share. As a result of this transaction, how much does the Paid- in Capital increase by? A. $160,000 B. $200,000 C. $180,000 D. $220,000