Which of the Following Is/are True About Amounts Received from Shareholders

question 23

Multiple Choice

Which of the following is/are true about amounts received from shareholders for the firm's shares when the firm first issued them?

• A)The firm assigns the par value of a share of stock at an amount it chooses.
• B)Par values are typically small, often $1 or less per share.
• C)Par values are rarely equal the amounts the firm receives when it issues the shares.
• D)The sum of the par value amount and the additional paid-in capital amount is the total amount received from shareholders.
• E)All of these answers are true.

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