Par Value of a Stock Refers to The

question 128

Multiple Choice

Par value of a stock refers to the:

• A)issue price of the stock.
• B)value assigned to a share of stock in the corporate charter.
• C)market value of the stock.
• D)maximum selling price of the stock.

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Definitions:

Unlevered Firm

A company or business that operates without the use of borrowed money or debt in its capital structure.

Unlevered Cost

The cost of an investment that has not been affected by the inclusion of debt, often referenced in the context of cost of capital.

After-Tax Net

The amount of money that remains after all taxes have been deducted from revenue or income.

Annual Interest

The interest amount that is earned or paid on a financial instrument in one calendar year.