1. The sale of a new common stock at a price greater than par vale will affect which balance sheet accounts? ( choose the most complete answer)
A. Common stock, paid-in capital, retained earnings
B. Assets, common stock, paid-in capital
C. Liabilities, common equity
D. Common stock, retained earnings
E. Common stock, paid-in capital
2. company y has earning of $2.60 per share. the benchmark price/earning ratio of this industry is 17. sales of the company are $5,200,000. there are 400,000 shares outstanding.
What stock price would you consider appropriate?
if the price sales benchmark ratio is 3.9. What is an appropriate stock price?