EBK CFIN
EBK CFIN
5th Edition
ISBN: 9781305888036
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 2, Problem 4PROB
Summary Introduction

The common stock at par is the minimum value or usually very small value (like $0.1 or $0.01) of the common stock which is listed in the corporate charter. The stock does not have any part value.

Paid-in capital is the amount which is raised through the sale of equity by the firm. It is the equity value which is paid-in by investors during the issuance of common stock.

RR issued the common stock of 100,000 at $7 each share. The par value of the stock is $3 per share.

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