Public Equity Corporation Acquired Lenore Company Through an Exchange of Common

question 55

Multiple Choice

Public Equity Corporation acquired Lenore Company through an exchange of common shares.All of Lenore's assets and liabilities were immediately transferred to Public Equity.Public's common stock was trading at $20 per share at the time of exchange.Following selected information is also available.

-Based on the preceding information,what is the par value of Public's common stock?

• A)$10
• B)$1
• C)$5
• D)$4

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Definitions:

HDC

Stands for Holder in Due Course, referring to a party that has acquired a negotiable instrument for value, in good faith, and without notice of any defects.

Primarily Liable

The entity or individual who holds the main responsibility for fulfilling an obligation or compensating for a loss.

Indorses

Acts of signing one's name on the back of a negotiable instrument, thereby transferring rights associated with the instrument to another party.

Negotiates

Engages in discussions aimed at reaching an agreement in situations involving varying interests.