Question: 1. Which is the better investment-common stock with a par value of $5 per share or common stock with a par value of $20 per share?
2. For what reasons might a company like IBM repurchase some of its stock (treasury stock)? 10. Monet, Inc. purchases 1,000 shares of its own previously issued $5 par common stock for $11,000. Assuming the shares are held in the treasury, what effect does this transaction have on
(a) net income,
(b) total assets,
(c) total paid-in capital, and
(d) total stockholders' equity?