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Answered Same Day Dec 20, 2021

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Robert answered on Dec 20 2021

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SOLUTION 11.15:
a) The par Value can be defined as the face value of a stock. It is the dollar amount
attributable to a security when representing the value contributed for each share in cash or
goods. It has no relation with market value. It is the minimum price at which the shares
must be issued in order to be fully paid. The par value of company’s stock is $0.05.
If the issue price is greater than the par value, then stock is assumed to be selling at
premium. When the issue price is less than the par value, then the stock is called to be
selling at discount. In this case, the stock is selling at premium i.e. above par because the
proceeds from issue consist of paid in capital. The paid in capital in...

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