The Par Value Per Share of Common Stock Represents the

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As for the dividend per share DPS the amount is ordinarily specified as a percentage of the par value or as a fixed amount. In this case we are assuming the most straightforward variation of.


Chapter 6 Common Stocks Ppt Download

The common stock par value is 20 per share total common stock proceeds 20000.

. Therefore the capital surplus or additional paid-in capital is 80000 100000 -. The formula for calculating the cost of preferred stock is the annual preferred dividend payment divided by the current share price of the stock.


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