If the offering price of a stock is $4 and its capital in excess of par is $1, the par value of the stock is
A) $2.00.
B) $3.50.
C) $5.00.
D) $7.00.
E) $10.00.

Question

Quizplus · Accepted Answer

If the offering price of a stock is $4 and its capital in excess of par is $1, the par value of the stock is $5.00. The difference between a stock's par value and its offering price is the capital in excess of par. Hence, par value of a stock equals offering price of the stock plus capital in excess of par.

If the Offering Price of a Stock Is $4 and Its