what is the par or stated value per share of apple's common stock course hero

by Aniyah O'Hara 9 min read

What is a par value stock?

Sep 15, 2017 · Apple’s stock certificate shows that Apple Inc. has a par or stated value of common stoc of $0.00001. Par value is used as a guarantee to the potential investor that the company will not issue shares under that par value.

Why do companies set a minimum par value for their shares?

Oct 01, 2017 · The par or stated value of common stock of Apple, Inc. is $0.00001. The par or stated value is not connected with the market price of the stock. What this denotes is that each stock is estimated to sell at $0.00001. However, some stock may sell above par value and this is what is known as selling at premium. While some stock may sell at prices below par value or …

What is the difference between par value and face value?

Jun 30, 2021 · All tutors are evaluated by Course Hero as an expert in their subject area. a) The par or stated value of Apple inc. common stock is $0.00001 per share. b) The % of apples' authorized share issued and outstanding (In thousands) as on 30/09/2017 is 41% (5126201 / 12600000 x 100). (Round answer to 0 decimal places, e.g. 17%)

What is the financial effect of a no par value issue?

Apple inc has a par or stated value of common stock Apple Inc. has a par or stated value of common stock of $0.00001. This value differs from the market price of the stock, but this is the value that is stated on the stock certificate. This is the …

What is the par value of Apple's common stock?

$0.00001Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,255,423 and 5,336,166 shares issued and outstanding, respectively32,144Retained earnings100,001Accumulated other comprehensive income/(loss)245Total shareholders' equity132,390Total liabilities and shareholders' equity$37 more rows

How do you calculate par value per share of common stock?

Par value equals the book value divided by shares outstanding. The par value of a share of common stock is its stated face value. The issuer assigns a par value when a stock is originated; it is usually quite low--$0.01 or even $0. The par value is different from the current market price of the stock.

What is the par value of common stock represents?

The par value of common stock represents: The legal capital per share of stock assigned when the corporation was first established. When a company issues 25,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include: A credit to Additional Paid-in Capital for $225,000.

What is par stated value?

The par value, or face value, is the stated value per share. This price was printed on paper stock certificates before they became antiquated for newer electronic versions. If a company did not set a par value, its certificates were issued as no-par value stocks.

What is par value formula?

It is calculated by subtracting retained earnings from total equity. read more at par = par value * number of shares issued. Additional paid-in capital. It is the profit a company gets when it issues the stock for the first time in the open market. read more= number of shares* (amount at which shares issued – par value ...

What is the difference between par value and stated value?

A stated value is an amount assigned to a corporation's stock for internal accounting purposes when the stock has no par value. Like par value—which is the face value of a stock stated in the corporate charter—stated value is nominal, typically between $0.01 and $1.00. The stated value has no relation to market price.

How do you find the stated value?

For example, if the company has one million shares it issues and the stated value is $0.01 for each share, $10,000 will be the stated value of the stock. The amount gets credited to the corporation's account for capital stock and will be the legal capital of that corporation.

What is the effect of no par value stock?

The only financial effect of a no-par value issuance is that any equity funding generated by the sale of no-par value stock is credited to the common stock account.

What is a no par stock?

No-Par Value Stock: An Overview. A share of stock in a company may have a par value or no-par value. These categories are both pretty much a historical oddity and have no relevance to the stock's price in the market. The par value, or face value, is the stated value per share.

What does "no par" mean in stock?

If not, they may choose to issue "no-par" stock shares. This "no-par" status means that the company has not assigned a minimum value to its stock . No-par value stocks do not carry the theoretical liabilities of par value issues since there is no ...

Why do companies choose the smallest possible value?

In reality, since companies were required by state law to set a par value on their stock, they choose the smallest possible value, often one cent. This penny price is because the par value of a share of stock constitutes a binding two-way contract between the company and the shareholder.

What happens if you pay less than the par value?

If shareholders pay less than the par value for a share of stock and the issuing company later becomes unable to meet its financial obligations , its creditors can sue shareholders for the difference between the purchase price and the par value to recoup the unpaid debt. If the market price of the stock falls below the par value, ...

What happens if you buy 1,000 shares below par?

If all 1,000 shares are purchased below par, say for $30, the company will generate only $30,000 in equity. If the business goes under and cannot meet its financial obligations, shareholders could be held liable for the $20-per-share difference between par and the purchase price. Unlike a stock, a bond has a real par value.

Is par value the same as bond?

The par value of a stock may have become a historical oddity, but the same is not true for bonds. Bonds are fixed-income securities issued by corporations and government bodies to raise capital.

How much did Lab Industries pay dividends?

Lab Industries, Inc., issued $58,000 of bonds, paid cash dividends of $8,800, sold long-term investments for $12,800, received $5,800 of dividend revenue, purchased treasury stock for $15,800, and purchased new equipment for $19,800.

How much dividend does Main Street pay?

Main Street Company paid out $2.90 in dividends per share of common stock and had earnings per share of $5.60 during 2019. The market price of the stock on December 31, 2019 was $21.60 per share. There were 15,600 shares of stock outstanding for the entire year. The dividend yield as of December 31, 2019 is closest to: