SHOE received $73,000,000 for the issuance of its stock on April 24. The par value of the

Question:

SHOE received $73,000,000 for the issuance of its stock on April 24. The of the SHOE stock was only $73,000. Was the excess amount of $72,927,000 a profit to SHOE? If not, what was it? Suppose the of the SHOE stock had been $2 per share, $12 per share, or $15 per share. Would a change in the of the company’s stock affect SHOEs total paid in capital? Give the reason for your answer.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...