A premium on common stock:
A. Represents capital gain on sale of stock.
B. Occurs when a corporation sells its stock for more than par or stated value.
C. Is prohibited in most states.
D. Represents profit from issuing stock.
E. Is the difference between par value and issue price when the amount paid is below par.
Answer: B
You might also like to view...
Oak Valley Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $6.00 per square foot from the supplier. Delivery costs are $0.20 per square foot. Carpenters' wages are $20.00 per hour. Payroll costs are $4.00 per hour, and benefits are $5.00 per hour. How much is the direct materials standard cost per square foot?
A) $11.20 B) $10.20 C) $6.20 D) $6.00
A bond is simply a form of an interest bearing note
Indicate whether the statement is true or false
Your employer must provide you the opportunity to extend your health care coverage after you leave employment
Indicate whether the statement is true or false.
To achieve complete strategic fit, a firm must ensure that all functions in the value chain have diverse strategies that support functional goals
Indicate whether the statement is true or false.