A Firm Has $1,500,000 in Its Common Stock Account and $1,000,000

question 24

Multiple Choice

A firm has $1,500,000 in its common stock account and $1,000,000 in its capital paid in excess of par account. The firm issued 100,000 shares of common stock. What was the issue price (market value) if only one stock has ever been sold?

• A) $35 per share
• B) $25 per share
• C) $15 per share
• D) Not enough information to determine

---

Definitions:

Punitive Punishment

A form of penalty intended as a sanction for wrongdoing, aimed at deterring future misconduct.

Ideology

A system of ideas, beliefs, and values that shapes a social, political, or economic program.

Corrections Industry

The sector of the economy that deals with the administration and running of prisons, jails, and other facilities for incarcerating individuals.

Major State Employer

A major employer within a particular state, typically referring to businesses or organizations that employ a large portion of the state's workforce and have significant economic influence.