Reference no: EM132841443

Problem 1: In reviewing corporate equity on a balance sheet, what would be included in the description "Total Capital Stock"?

Select one:

a. Par value of preferred

b. Par value of common

c. Paid-in capital in excess of par value

d. Both (a) and (b)

Problem 2: The present value factor at 8% for one period is 0.92593, for two periods is 0.85734, for three periods is 0.79383, for four periods is 0.73503, and for five periods is 0.68058. Given these factors, what amount should be deposited in a bank today to grow to $100 three years from now?

Select one:

a. $100/0.79383

b. $100/(0.92593/3)

c. ($100/0.92593 + $100/0.85734 + $100/0.79383)

d. $100 X 0.79383