The Par Value Per Share of Common Stock Represents

question 82

Multiple Choice

The par value per share of common stock represents:

• A) the minimum selling price of the stock established by the articles of incorporation.
• B) the minimum amount the stockholder will receive when the corporation is liquidated.
• C) the monetary amount assigned to each share of stock in the articles of incorporation.
• D) the amount of dividends per share to be received each year.

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Definitions:

Net Cash Inflow

The excess of cash receipts over cash disbursements during a certain period, reflecting the liquidity generated from operations.

Cash Payback Period

The duration it takes for an investment to generate an amount of cash equal to the initial investment cost.

Net Income

The overall income a company retains following the subtraction of all costs and tax obligations from its earnings.

Net Cash Inflows

The total amount of cash received minus the total amount of cash outflows over a specified period.