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

$40.00

Explanation:

Given:2,500 shares of common stock

$100,000.00 total value

To Find :the par value of each share.

Solution:

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

No. of shares = 2500

Total value = $100,000.00

So, par value of each share =
`(100000)/(2500)`

=
`40`

Hence The par value of each share is $40.00

Option A is correct.