Which of These Will Decrease the Par Value of a Corporation's

question 194

Multiple Choice

Which of these will decrease the par value of a corporation's common stock?

• A)a stock split
• B)paying a stock dividend
• C)paying a cash dividend
• D)buying treasury stock

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Definitions:

Historical Rate

The exchange rate between two currencies at a past date, often used for comparative financial analysis or reporting purposes.

Temporal Method

An accounting method used to convert the financial statements of a foreign subsidiary to the parent company's currency, using exchange rates that change over time.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the company’s profits.

Historical Rate

A foreign exchange rate used to evaluate assets or liabilities, denoting the rate at a specific past date.