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The Value of the Capital Stock Shown in the Stock

Question 84

Multiple Choice

The value of the capital stock shown in the stock life insurance company's statutory basis balance sheet equals the par value per share multiplied by the number of issued shares. In the case of no-par stock:


A) The stated value per share is used (or liquidation value, for no-par preferred capital stock)
B) The Total value of shares is used (or liquidation value, for par preferred capital stock)
C) The market value per share is used (or liquidation value, for no-par preferred capital stock)
D) Capital stock may be sold to the public for an amount greater than par or stated value

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