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SOFE Exam AFE Topic 2 Question 46 Discussion

Actual exam question for SOFE's AFE exam
Question #: 46
Topic #: 2
[All AFE Questions]

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:

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Suggested Answer: B

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

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Kathrine
18 days ago
This question is making my head spin. I need to find the answer key and a strong cup of coffee!
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James
21 days 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.
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Kenny
22 days 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?
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Emerson
1 months ago
Wait, isn't it option C? I thought we use the market value per share for no-par stock.
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Remedios
19 days ago
C) The market value per share is used (or liquidation value, for no-par preferred capital stock)
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Rolland
21 days ago
B) The Total value of shares is used (or liquidation value, for par preferred capital stock)
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Dawne
27 days ago
A) The stated value per share is used (or liquidation value, for no-par preferred capital stock)
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Leana
2 months ago
I'm pretty sure it's option A. The stated value or liquidation value is used for no-par stock, right?
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Berry
28 days ago
That's right. The stated value or liquidation value is used for no-par stock.
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Arlene
1 months ago
Yes, you are correct. The stated value per share is used for no-par stock.
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Shantell
2 months 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
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Ezekiel
2 months ago
I agree with Cecilia, because for no-par stock, there is no par value to use
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Cecilia
2 months ago
I think the answer is A) The stated value per share is used
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