A Company Is About to Issue 1,000 New Shares of Stock

question 92

Multiple Choice

A company is about to issue 1,000 new shares of stock at a market price of $33 per share.If the par value per share is $4,the increase in capital surplus from this stock issue will be:

• A) $33,000.
• B) $4,000.
• C) $29,000.
• D) $32,000.

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Definitions:

Marginal Productivity

The additional output that can be produced by adding one more unit of a specific input, keeping all other inputs constant.

Fixity

In economics, refers to the inelasticity or immobility of certain factors, like land or capital, which can limit responsiveness to changes in market conditions.

Long Run

A period of time sufficient for all adjustments to be made in an economy or market, considering all possible changes in production.

Average Costs

The total cost of production divided by the number of units produced, used to determine the average expense per unit.