A company is about to issue new shares of stock.If the par value per share is $4,the price of the new shares will most likely be:
A) less than $4.
B) equal to $4.
C) greater than $4.
D) equal to the capital surplus.

Question

Quizplus · Accepted Answer

The price of the new shares will most likely be greater than $4, as the par value is just a minimum value and the price of the shares is determined by the market demand and supply. The company will likely issue the shares at a price that investors are willing to pay, which could be higher than the par value.

A Company Is About to Issue New Shares of Stock