There is a direct relationship between the par value and market value of common stock: stocks with a low par value have a low market value, while stocks with a high par value have a high market value.a. True
b. False

Answers

Answer 1

Answer:

Answer:

The statement is false.

Explanation:

As the market value of the stock depends upon the industry risk, political, economical, technological, etc factors and also largely depends upon the business performance which is the profits generated by the organization and its cashflow health. So higher par value has nothing to do with higher market value. Hence the statement is totally incorrect.

Related Questions

Following is a list of financial statement items and amounts for Vantage Service as of 12/31/Year 1, the end of its first year in operation.Accounts Receivable $ 41,300Accounts Payable 31,300Cash 10,130Common Stock 21,300Notes Payable 10,260Equipment 50,650Sales Revenue 106,500Fuel Expense 10,130Rent Expense 11,200Advertising Expense 5,130Salaries and Wages Expense 21,300Retained Earnings ?Dividends 19,520Required: Prepare the Income Statement for the year ended December 31, Year 1. Prepare the statement of retained earnings for the year ended December 31, Year 1. Prepare the balance sheet for the year ended December 31, Year 1.
Giả sử Công ty TNHH Đông Đô mua 1 bản quyền công nghệsản xuất dứa quả xuất khẩu của Nhật Bản với giá là 500.000USD (tỷgiá 16.000VNĐ/USD) tính ra bằng 800 triệu VNĐ, thanh toán theohình thức thư tín dụng (L/C) thông qua Ngân hàng Ngoại thương ViệtNam, thuế nhập khẩu 10% và thuế GTGT hàng nhập khẩu 10%. Côngty đã nộp các khoản thuế trên bằng chuyển khoản. Chi phí đăng kýpháp lý liên quan đến bản quyền công nghệ trong nước là 16,5 triệu đãtrả bằng tiền mặt (thuế GTGT 10%). Biết rằng doanh nghiệp thực hiệntính nộp thuế GTGT theo phương pháp khấu trừ.Yêu cầu : Xác định nguyên giá TSCĐ vô hình vừa mới được mua(Biết rằng TSCĐ vô hình được đưa vào sử dụng ngay)
Equipment was purchased for $300,000. Freight charges amounted to $14,000 and there was a cost of $40,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $60,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be:________. a. $70,800 b. $58,800 c. $49,200 d. $48,000
Equivalent Units of Conversion Costs The Filling Department of Eve Cosmetics Company had 4,000 ounces in beginning work in process inventory (60% complete). During the period, 46,000 ounces were completed. The ending work in process inventory was 8,000 ounces (25% complete).What are the total equivalent units for conversion costs? If required, round to the nearest unit.
In 2010, Toyota recalled millions of automobiles to fix a potentially hazardous problem known as sudden acceleration. Writing in the Wall Street Journal, James Stewart gave investors the following advice: "Toyota shares were over $90 as recently as Jan. 19, 2010. They closed Tuesday (February 02, 2010) at $78.18, which strikes me as a modest decline under the circumstances. If I owned shares, I’d seize the chance to get out.Required:Would a believer in the efficient markets theory be likely to follow Stewart's advice?

Which of the following costs are most likely to be classified as variable? A. Factory rent.
B. Manager salaries.
C. Insurance.
D. Direct materials.
E. Straight-line depreciation.

Answers

Answer:

Correct answer is D. Direct materials

Explanation:

Among the given choices, direct materials is most likely to be classified as variable cost. Direct materials are the supplies used in manufacturing products which can be directly identified in the output production. It is a main component which is traceable to create or produce products. Basically, all manufacturing industries used direct materials as their variable cost in their production.

Which account would be listed on a post-closing trial balance?a. Sales Revenue
b. Depreciation Expense
c. Retained Earnings
d. Income Tax Expense.

Answers

Answer: c. Retained Earnings

Explanation:

The post-closing trial balance reflects balance sheet items that do not have a $0 balance in them when a period has ended and is prepared after the temporary accounts have been closed off. The purpose is to make sure that the debits equal the credits.

As there are no temporary accounts, all income statement items will have been closed off and moved to the Retained earnings account which will reflect the total for the income statement for the year. The only account that will be listed in the post-closing trial balance therefore will be the Retained earnings account.

You are the supply chain manager for a small company that makes customized road bicycles. YouCEO asks you to explain the steps in the process for manufacturing and delivering the product to
consumers, in your supply chain. Use the module content and Better Business to explain the steps i
the process, in four to five sentences minimum.
HTML Editora

Answers

Answer:

The points are as follows:-

1. Their preparations must be successful, and their implementation from the highest to the lowest managerial level is necessary.

2.We need to handle the whole project schedule acquisition process.

3.They ought to manage the sales contract for the finished product and the materials and machinery.

4.Prepare its manual data or auto-metrically produced purchase agreement from the line as well as from the planning process.

The boom in online, mobile, and social media has created a new set of social and ethical issues for companies. Their greatest concern involves ________. Group of answer choices failure to provide value-priced products for online customers protecting the privacy of knowing and unknowing customers providing too many alternative products online which confuses customers rarely following the marketing orientation when devising promotional offers online failing to reach their target customers through online marketing

Answers

Answer:

The correct answer is the second option: Protecting the privacy of knowing and unknowing customers.

Explanation:

Nowadays the use of the currents social medias is beginning to increase in the area of the marketing and the business world due to the wide range of communication that it can has, that is, the ability of those medias to reach the target audience and therefore to communicate the message established in the marketing mix. Moreover, due to the fact that a lot a people are reached during that process, most of them unknown customers, the most important concern for the companies regarding social and ethical issues is the protection of the privacy of those customers because personal information is given when making a purchase or just signing in the companies' websites.

The implied warranty of fitness for a particular purpose requires: a. proof that the seller made the first contact with the buyer.
b. proof that the seller used the term "warrant."
c. proof that the seller is a merchant.
d. none of the above

Answers

Answer: (D)

None of the above

Explanation:

Implied warranty of fitness for a particular purpose is a warranty that a seller has knowledge about a product and the purpose of that product, and the seller guarantees the buyer that the product is fit to be used for that purpose.

The requirements therefore are that;

• The seller knows about the product required by the buyer, and its purpose.

• The seller knows the buyer is relying on his expertise.

Therefore, none of the options provided above are requirements of implied warranty of fitness for a particular purpose.

Jordan has the following assets and liabilities:_______. Two cars $10,000 House $200,000 Mortgage $100,000 Cash $1,000 Car loans $3,000 Checking account balance $2,000 Credit card balance $1,000 What is Jordan’s wealth?a. $107,000b. $213,000
c. $109,000
d. $111,000

Answers

Answer:

c $109,000

Explanation:

A person's wealth is calculated by deducting their liabilities from their assets. The value left after the deduction is the person's wealth. In the above case, Jordan's wealth is calculated as;

= Assets [ Two cars + House + Cash balance + Checking account balance ] - Liabilities[ Mortgage - Car loans - Credit card balance ]

= [ $10,000 + $200,000 + $1,000 + $2,000 ] - [$100,000 + $3,000 + $1,000]

= $213,000 - $104,000

= $109,000

Therefore, Jordan's wealth is $109,000

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Disney and other global firms have successfully bridged the cultural gap by producing advertising that appeals to the same target market across Multiple Choice a. regions. b. countries. c. demographics. d. counties. e. countercultures.

No Fly Corporation sells three different models of a mosquito "zapper." Model A12 sells for $55 and has variable costs of $40. Model B22 sells for $107 and has variable costs of $79. Model C124 sells for $414 and has variable costs of $307. The sales mix of the three models is A12, 55%; B22, 29%; and C124, 16%. What is the weighted-average unit contribution margin

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Boise, a division of Price Enterprises, currently performs computer services for various departments of the firm. One of the services has created a number of operating problems, and management is exploring whether to outsource the service to a consultant. Traceable variable and fixed operating costs total $80,000 and $25,000, respectively, in addition to $18,000 of corporate administrative overhead allocated from Price. If Boise were to use the outside consultant, fixed operating costs would be reduced by 70%. The irrelevant costs in Boise’s outsourcing decision total: