Exam 11: Reporting and Analyzing Equity

_____________________ preferred stock has a feature that allows preferred stockholders to share with common stockholders in any dividends paid in excess of the percent or dollar amount stated on the preferred stock.

The price-earnings ratio reveals information about the stock market's expectations for a company's future growth in earnings,dividends,and economic opportunities.

An amount of assets defined by state law that stockholders must invest and leave invested in a corporation is called the:

The total amount of cash and other assets received by a corporation from its stockholders in exchange for common stock is:

Explain how to compute book value per share and discuss how it can be used to analyze the financial condition of a corporation.

The costs of bringing a corporation into existence,including legal fees,promoter fees,and amounts paid to obtain a charter,are called:

The statement of changes in stockholders' equity:

A company had the following stockholders' equity on January 1: On January 10,the company declared a 40% stock dividend to holders of record on January 25,to be distributed January 31.The market value of the stock on January 10 prior to the dividend was $20 per share.What is the book value per common share on February 1?

A stock dividend is never a ________________ on the balance sheet because it will never reduce _______________.

On August 31,2013,Victory Corporation's common stock is priced at $30 per share before any stock dividend or split,and the stockholders' equity section of its balance sheet appears as follows.Assume that the company declares and immediately distributes a 15% stock dividend. -What is the total amount in the Retained Earnings account immediately after the stock dividend?

When all of the authorized shares have the same rights and characteristics,the stock is called:

A company has 40,000 shares of common stock outstanding.The stockholders' equity applicable to common shares is $470,000 and the par value per common share is $10.The book value per share is:

A company has net income of $850,000.It also has 125,000 weighted-average common shares outstanding and a market value per share of $115.The company's price-earnings ratio is equal to:

A company reported $990,000 in net income for the current year.Total weighted-average number of common shares outstanding are equal to 150,000 shares and the year-end market price is $79.20 per common share.Calculate the company's price-earnings ratio.

A liquidating dividend is:

Reynaldo Inc.issued 1,000 shares of $10 stated value stock for $1 per share.How would the company record this transaction?

On January 1,2014,Elliott Corp.repurchased 1,000 shares of its $1 par value common stock on the market when it was trading for $15 per share.On March 1,2104,Elliott reissued the treasury stock by selling it for $15 per share.How would the company record the March 1 transaction?

The journal entry to record distribution of a cash dividend to common shareholders includes a debit to _______________________ and a credit to __________.

What are the rights generally granted to common stockholders?

A company has 1,000 shares of $50 par value,4.5% cumulative and nonparticipating preferred stock and 10,000 shares of $10 par value common stock outstanding.The company paid total cash dividends of $1,000 in its first year of operation.The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is: