Use the Following to Answer Questions

question 34

Multiple Choice

Use the following to answer questions:
-(Table: Consumer Surplus) Look at the table Consumer Surplus. Assume that each student wants to buy one ticket. If the price of a ticket to see The Nutty Nutcracker is $50 and there is no other market for tickets, total consumer surplus for the five students is:

• A) $105.
• B) $130.
• C) $270.
• D) $320.

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Definitions:

Par Value

A nominal or face value assigned to a security or stock, which may bear no relation to its market value.

Paid-In Capital

The sum of funds that a corporation has obtained from investors in return for stock shares.

Legal Capital

The portion of a company's equity that cannot legally be distributed to shareholders, often equating to the par value of the issued shares.

Common Stock

Represents equity ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.