The Hyperion Company has an authorized capital stock of one thousand shares with a par value of

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The Hyperion Company has an authorized capital stock of one thousand shares with a par value of $100 per share, of which nine hundred shares, all fully paid, were outstanding. Having an ample surplus, the Hyperion Company purchased from its shareholders one hundred shares at par. Subsequently, the Hyperion Company, needing additional working capital, issued two hundred shares to Alexander at $80 per share. Two years later, the Hyperion Company was forced into bankruptcy. How much, if any, may the trustee in bankruptcy recover from Alexander?

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,...
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Smith and Roberson Business Law

ISBN: 978-0538473637

15th Edition

Authors: Richard A. Mann, Barry S. Roberts

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