When a Corporation Issues No Par Value Stock, the Entire

question 58

True/False

When a corporation issues no par value stock, the entire consideration received constitutes stated capital unless the board of directors allocates a portion of the consideration to capital surplus.

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Definitions:

Tax Havens

Countries with no or low corporate taxes.

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and attract funds.

Net Present Value

A financial metric indicating the value of a series of cash flows over time in today's dollars.

Capital Budgeting

The process a business undertakes to evaluate potential major investments or expenditures to ensure financial viability and return on investment.