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The Par Value of the Common Stock of a Large

Question 104

Multiple Choice

The par value of the common stock of a large listed corporation:


A) Tends to establish a ceiling for the market price of the stock.
B) Tends to establish a floor for the market price of the stock.
C) Represents legal capital and is not related to the market price of the stock.
D) Is increased by net income and decreased by dividends.

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