When a Firm Issues 50,000 Shares with a Par Value

question 27

Multiple Choice

When a firm issues 50,000 shares with a par value of $5 and a market price of $22 per share,additional paid in capital will:

• A) decrease by $250,000.
• B) increase by $250,000.
• C) increase by $850,000.
• D) increase by $1,100,000.

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Definitions:

Movement Goals

The intended aims or objectives pursued by a social movement or collective action group.

Contagion Theory

A social theory suggesting that ideas, attitudes, and emotions can spread through populations similarly to infectious diseases.

Gustave Le Bon

A French social psychologist best known for his work on crowd psychology and the study of the characteristics and behavior of crowds.

Type A

A personality type characterized by competitiveness, high ambition, aggressiveness, impatience, and a sense of urgency, which may be associated with stress and heart disease.