Answered

The Hamilton Brush Company issued 2,500 shares of common stock worth $100,000.00 total. What is the par value of each share?

A$400.00
B$25.00
C$250.00
D$40.00

Verified Answer :

What we know here is that all 2500 shares together are worth 100 000 dollars in total. (it's 100 000.00 actually, but we can ignore the part after the point, as it's equal to 0).

This means that each of the shares is valid the whole sum divided by the number of shares, that is:
\(\frac{100000}{2500} = \frac{1000}{25} =40\)
(first i divided both denominator and numerator by 100)
So each value is worth 40 dolars.