Par Value

question 159

Multiple Choice

Par value

• A) is the monetary value assigned per share in the corporate charter
• B) represents what a share of stock is worth
• C) represents the original selling price for a share of stock
• D) is established for a share of stock after it is issued

---

Definitions:

Cash Ratio

A liquidity metric that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

Long-Term Debt

Debt that is due to be paid off over a period longer than one year.

Earnings Per Share

A metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, indicating a company's profitability.

Treasury Stock

Shares that were issued and subsequently reacquired by the company, reducing the amount of outstanding stock on the open market.