Par vale will affect which balance sheet accounts

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1. The sale of a new common stock at a price greater than par vale will affect which balance sheet accounts? ( choose the most complete answer)

A. Common stock, paid-in capital, retained earnings

B. Assets, common stock, paid-in capital

C. Liabilities, common equity

D. Common stock, retained earnings

E. Common stock, paid-in capital

2. company y has earning of $2.60 per share. the benchmark price/earning ratio of this industry is 17. sales of the company are $5,200,000. there are 400,000 shares outstanding.

What stock price would you consider appropriate?

if the price sales benchmark ratio is 3.9. What is an appropriate stock price?

Reference no: EM131871596

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