Which one of the following equity concepts would you expect to be least important to a financial analyst?
A) Par value per share
B) Additional paid-in capital
C) Retained earnings
D) Net common equity

Question

Quizplus · Accepted Answer

Par value per share is a nominal value determined by the company and has no impact on the market value of the stock. Financial analysts are more concerned with metrics that reflect the actual value of equity, such as net common equity and retained earnings. Additional paid-in capital is also important as it reflects the amount received by the company in excess of the par value of the shares.

Which One of the Following Equity Concepts Would You Expect