Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions

SOFE AFE Exam - Topic 2 Question 46 Discussion

Posted by Celeste on Sep 22, 2022 at 02:32 PM

The value of the capital stock shown in the stock life insurance company's statutory basis balance sheet equals the par value per share multiplied by the number of issued shares. In the case of no-par stock:

Suggested Answer: B

Get Premium AFE Questions as Interactive Web-Based Practice Test or PDF Real Exam Format Detailed Explanations Instant Access Get Your Practice Test
30 comments · newest first
LI
Lindsey 11 months ago
Just to clarify, par value is different from market value.
WA
Wava 11 months ago
D is interesting, but isn't that just for public offerings?
RI
Rima 12 months ago
Wait, isn't it more complicated than that?
AS
Ashleigh 12 months ago
Totally agree, that's how it works!
MA
Magdalene 12 months ago
A is correct, stated value is key for no-par stock.
WE
Wenona 1 year ago
I recall that capital stock can be sold above par value, so D could be relevant, but I think the focus is more on how we value no-par stock.
ME
Melvin 1 year ago
I'm a bit confused about the terms used in the options. I feel like I need to review what liquidation value means in this context.
TA
Tandra 1 year ago
I remember practicing a similar question where we discussed how no-par stock is valued. I think A makes the most sense here.
SH
Sherell 1 year ago
I think the answer might be A, but I'm not entirely sure about the distinction between stated value and liquidation value.
DE
Demetra 1 year ago
Okay, let's see here. I'm pretty confident that cross-site scripting and log poisoning would be the best options to try next. The question is specifically asking about the "most likely" next steps, so those seem like the safest bet.
BE
Bernardine 1 year ago
I think SMED is related to reducing setup time, but I'm not 100% sure. It might be option D?
BE
Bettye 1 year ago
No problem, I've done plenty of these types of capital budgeting problems before. I'll just plug all the numbers into the right formulas and I should be able to get the right answer quickly.
BI
Billye 1 year ago
Hmm, I'm a bit confused. The question says there might be more than one correct solution, so I'm not sure if changing the pricing tier is the only way to solve this. I'll need to review the different App Service options and see if there are any other potential solutions.
AL
Allene 1 year ago
The ORIGINATION-PE and LOCAL-CITY communities are definitely crucial, I've seen questions about that before, but I can't remember the exact syntax we practiced.
KA
Kathrine 1 year ago
This question is making my head spin. I need to find the answer key and a strong cup of coffee!
JA
James 1 year ago
Hold on, I think the answer is B. We use the total value of shares for par preferred capital stock, not the liquidation value.
KE
Kenny 1 year ago
Hmm, I'm leaning towards option D. Doesn't the capital stock get sold to the public for more than par or stated value?
RY
Ryan 1 year ago
↳ replying to Kenny
In that case, option D seems to be the most accurate choice for the value of capital stock in the case of no-par stock.
EA
Earleen 1 year ago
↳ replying to Kenny
Yes, that's correct. Capital stock can indeed be sold to the public for an amount greater than par or stated value.
CH
Cheryll 1 year ago
↳ replying to Kenny
I think you're right, option D makes sense because capital stock can be sold for more than par value.
EM
Emerson 1 year ago
Wait, isn't it option C? I thought we use the market value per share for no-par stock.
RE
Remedios 1 year ago
↳ replying to Emerson
C) The market value per share is used (or liquidation value, for no-par preferred capital stock)
RO
Rolland 1 year ago
↳ replying to Emerson
B) The Total value of shares is used (or liquidation value, for par preferred capital stock)
DA
Dawne 1 year ago
↳ replying to Emerson
A) The stated value per share is used (or liquidation value, for no-par preferred capital stock)
LE
Leana 1 year ago
I'm pretty sure it's option A. The stated value or liquidation value is used for no-par stock, right?
BE
Berry 1 year ago
↳ replying to Leana
That's right. The stated value or liquidation value is used for no-par stock.
AR
Arlene 1 year ago
↳ replying to Leana
Yes, you are correct. The stated value per share is used for no-par stock.
SH
Shantell 2 years ago
I believe the answer is D) Capital stock may be sold to the public for an amount greater than par or stated value, as it allows for flexibility in pricing
EZ
Ezekiel 2 years ago
I agree with Cecilia, because for no-par stock, there is no par value to use
CE
Cecilia 2 years ago
I think the answer is A) The stated value per share is used
0/2000 characters

Save Cancel