Which one of these statements is correct regarding U.S. firms during the period

Question

Which one of these statements is correct regarding U.S. firms during the period 1995-2012?

A.

Firms have rarely relied on debt financing.

B.

Internal funds have provided less than half of the firms financing needs.

C.

Firms have repurchased more equity than they have sold.

D. Debt is used to fund approximately half of the firms financing needs.

If 100 million shares of common stock are issued with a par value of $2 and additional paid in capital is $800 million, the total par value of the issued shares is:

A.

$200 million.

B.

$600 million.

C.

$800 million.

D.

$1 billion.

15.

Earnings this year for Plasti-tech Inc. were $200,000. It decided to plow back $60,000 and recorded $20,000 of depreciation. Plasti-tech's internally generated funds are:

A.

$40,000.

B.

$60,000.

C.

$80,000.

D.

$140,000.

A.

Firms have rarely relied on debt financing.

Explanation / Answer

  Answers:

Q-2: Total par value of shares issued = Number of shares issued * Par value per share

= 100 Million Shares *$2

= $200 Million

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.