Which of the Following Statements Is True with Regard to Contributed

question 117

Multiple Choice

Which of the following statements is true with regard to contributed capital?

• A)Preferred stock is stock that has been retired.
• B)It is very unlikely corporations may have more than one class of stock outstanding.
• C)The outstanding number of shares is the maximum number of shares that can be issued by a corporation.
• D)The shares that are in the hands of the stockholders are said to be outstanding.

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Definitions:

Cash Flows

The net amount of cash and cash-equivalents moving into and out of a business.

Today's Dollars

Today's Dollars refers to the value of money in terms of the present day's purchasing power, often used to account for inflation in financial calculations.

Profitability Index

A calculation that measures the ratio between the present value of future cash flows to the initial investment, used to assess the profitability of an investment.

IRR

The discount rate at which the net present value of all the cash flows from a project or investment equals zero.