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:

Orientation

The process of introducing new employees to an organization, its culture, their roles, and their colleagues, often including training and adjustment support.

Classroom Training

A traditional form of instruction that takes place in a classroom setting, typically led by an instructor or teacher.

Fixed Socialization

The process through which individuals learn and adapt to the norms and values of a specific group or society, often viewed as stable and unchanging.

Assigned Mentor

A person who is deliberately chosen to provide guidance, knowledge, and support to another individual, often in a professional or academic context.