Question

The Hamilton Brush Company issued 2,500 shares of common stock worth $100,000.00 total. What is the par value of each share? A. $40.00 B. $250.00 C. $400.00 D. $25.00

Answer 1

Given:
2,500 shares of common stock
$100,000.00 total value

Find the par value of each share.

Par value is the value written on each certificate of stock.

We get the par value by dividing the total value of the common stock by the total number of shares of common stock.

$100,000 ÷ 2500 shares = $40 per share

The par value of each share is $40.00

Answer 2

the answer to this question a $40.00