1. What are the firm's working capital needs? Cite 2 sources of short term financing.
2. A firm has $2,600,000 in its common stock account and $26,000,000 in its paid-in capital account. The firm issued 520,000 shares of common stock. What is the par value of the common stock?
$50 per share
$5 per share
$4 per share
$55 per share
3. A firm with earnings per share of $5 and a price-earnings ratio of 23 will have a stock price of
a. $28.00
b. The market assigns a stock price independent of EPS and the P/E ratio.
c. $115.00
d. $3.00