If the corporation when formed sets a par value for its shares low and issue common   stock for a price above par, what is this amount above par called?  Can this amount be treated as a gain, income, or profit for the corporation?  Please give the reason for your answer.

Q: If the corporation when formed sets a par value for its shares low and issue common   stock for a…

A: Par value of share is the face value that is fixed by the company but the shares may be sold at a…

Q: In case of a corporation, if the share holders want the dividend payout ratio to increase and…

A: The corporation is regulating through two parties, one with the internal affairs and other with the…

Q: Which of the following statements are true? Multiple select question. Since the par value…

A: Stock is defined as the security which represents the ownership of the fraction of the corporation.…

Q: Why would a corporation have multiple stock share classes?  What are your thoughts?

A: Multiple stock share class means division of shares into different classes  based on : i) Voting…

Q: What is the classification of shares that has privileges over any of the other classes of shares in…

A: Par value shares: These are those shares that have a face value per share also known as par value.…

Q: What are some reasons corporations issue stock dividends?

A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in…

Q: When a corporation has only one class of share capital, book value per share is computed as…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: Corporations with simple capital structures (only Common Stock issued) need not present Earnings per…

A: true  Corporations with simple capital structures (only Common Stock issued) need not present…

Q: corporation,dividend,limited liability,over-the counter market,stock exchange and stock market index

A: In finance we often hear the words corporation, dividends, limited liability etc. These are all…

Q: How is preferred stock valued and after-tax Earnings of a corporation ultimately belong to whom?

A: Preferred stock is the form of stock which might have any combination of the features not possessed…

Q: Explain the corporate characteristic termed “no mutual agency”   Explain the corporate…

A: Solution:- 1)Explanation of the corporate characteristic termed “no mutual agency” as follows…

Q: How is book value per share computed for a corporation with no preferred stock? What is the main…

A: Book value per share with no preferred stock is computed by dividing the stockholders equity…

Q: From a corporation’s point of view, how does preferred stock differ from common stock?

A: Difference between Preferred and Common Stock from a corporation's point of view:   1. Preferred…

Q: When comparing common and preferred stock, indicate whether each of the following statements is true…

A: 1. False the preferred shareholders get guaranteed dividend but not higher than common stockholders…

Q: Which of the following correctly indicates how the issue price of common stock shares would be…

A: Price of an IPO is determined by the performance of the company and their expectation on the price…

Q: Equity is the Amount of a company's capital is owned by the shareholders. In sole proprietorship and…

A: solution concept In a balance sheet of company There is asset , liabilities and equity Equity means…

Q: corporation might have treasury stock listed on their financials for all the following reasons…

A: solution concept treasury stock means the stock that is bought back by the company When the stock is…

Q: d) Which characteristic of a corporation limits a stockholder's loss to the amount of his or her…

A: Company means a form of business where the share holder invest money in business in form of shares…

Q: Why might a stock dividend or a stock split be of limited value to an investor?  What about a stock…

A: Stock Dividend:When the corporation paid a dividend to stockholders in the form of stock instead of…

Q: How is the accounting for a purchase of a company’s own stock (treasury stock) different from the…

A: A company’s stock is the shares a company holds or the shares on which a company has its ownership…

Q: What are the relative benefits and drawbacks of selling bonds, common stock, and preferred stock…

A: The main objective of the company is to reduce the overall cost of issuing the capital. The Company…

Q: Which of the following statements is NOT CORRECT? "Going public" establishes a firm's true intrinsic…

A: The correct and incorrect options and their explanations have been given in the next step.

Q: Because common stock represents a residual interest in the corporation, the value of common stock is…

A: Common Stock represent ownership stake by the equity share holders of the company. They are paid…

Q: Indicate whether the following statements are true or false. If the statementis false, explain…

A: Introduction: Capital gain is referred as any profit or gain that coming from the sale of a ‘capital…

Q: What is Treasury share? What are the reasons that the corporation for reacquisition of shares?

A: Treasury shares are the shares that are brought back by the issuing entity from the open market from…

Q: When a corporation has only one class of share capital, book value per share is computed as * O…

A: 1. Book Value per Share - Book value per share is the value of the firm that the shareholder's would…

Q: The amount of stock that a corporation has sold at some given time is called?

A: Issue of shares is one of the important source of finance that is being used in business. Shares can…

Q: Which of the following statements is NOT CORRECT? "Going public" establishes a firm's true intrinsic…

A: PUBLIC COMPANY               public company are those company which has sold all or part of its…

Q: f stock is issued for an asset other than cash the asset should be recorded on the books of the…

A: SOLUTION- CURRENT MARKET VALUE OF ASSET  GIVES PARTIES INTERESTED IN MAKING A TRANSACTION THE…

Q: What is (are) the test(s) REQUIRED by the NYSE so that companies are eligible to list their shares?…

A: There are various test required for companies to eligible to list their shares

Q: Which of the following is true about share split? * It increases the total number of outstanding…

A: Share split break a share into number if pieces reducing the par value of the share.

Q: If a corporation has only one class of stock, the account is entitled Common Stock or a.Preferred…

A: Common Stock are the ordinary shares of accompany. It represents the ownership in a company. Common…

Q: share capital, subscription of shares, and treasury shares

A: The company issue share capital to fulfil its capital requirement. When the public pays the…

Q: i. Explain the corporate characteristic termed “no mutual agency” ii. Explain the corporate…

A: Here discuss about the structure of corporation type business and its characteristic like common…

Q: How much is the authorized share capital? How much is the issued share capital? How many shares of…

A: The authorized share capital is the maximum amount of share capital that the company is authorized…

Q: True or False: Corporations are required to have a par value associated with their common stock.…

A: The question is multiple choice question. Required  True or Flase

Q: What us earnings per share? What us its significance to the shareholders? How is it computed if:…

A: Earning per share (EPS) is calculated as a company’s profit divided by number of shares outstanding…

Q: Is there a type of stock preferable over the other? Should a corporation also utilize borrowing if…

A: Equity Stock represents the equity shares of a company. Equity shares are the part of company owned…

Q: Under the cost method, when treasury stock is purchased by the corporation, the par value and the…

A: Treasury stocks  are those stocks  reacquired by the company from the previously issued stock to the…

Q: When a corporation’s earnings and dividends are exemplary good, which type of preference shares will…

A: World Health Organization submits capital with the assumption for accepting money related returns.…

Q: There are two primary means to earn income as a stockholder. The first method is dividend income,…

A: There are different parties of the company that are interested in the workings. These are known as…

Q: It is often said that the primary obejctive of a corporation is to maximize stockholder wealth. do…

A: According to the shareholder's target, the administration should aim to optimize the current value…