If 100 Million Shares of Common Stock Are Issued with a Par

question 3

Multiple Choice

If 100 million shares of common stock are issued with a par value of $2 and additional paid-in capital of $800 million,the total par value of the issued shares is:

• A) $200 million.
• B) $600 million.
• C) $800 million.
• D) $1 billion.

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Definitions:

Savings Plan

A strategy designed to help individuals allocate a portion of their income for future use, typically involving deposit accounts or investments.

Semi-Annual Deposits

Deposits made twice a year into a financial account or investment vehicle.

Compounded Quarterly

Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on a quarterly basis.

Compounded Semi-Annually

Interest that is computed and added to the principal twice a year, allowing the investment to grow more rapidly.