If 100 million shares of common stock are issued with a par value of $2 and additional paid-in capital of $800 million,the total par value of the issued shares is:
A) $200 million.
B) $600 million.
C) $800 million.
D) $1 billion.

Question

Quizplus · Accepted Answer

The par value of the issued shares is calculated by multiplying the number of shares by the par value per share. In this case, 100 million shares with a par value of $2 would result in a total par value of $200 million. The additional paid-in capital is not factored into the par value calculation.

If 100 Million Shares of Common Stock Are Issued with a Par