1) For what reasons might a company like IBM repurchase some of its stock (treasury stock)?

2)

(a) Preferred stock may be cumulative. Discuss this feature. (b) How are dividends in arrears presented in the financial statements?

3)A large stock dividend and stock split can frequently have the same effect on the market price of a corporation's stock. Explain how stock dividends and stock splits affect the market price of a corporation's stock.

4)Why must a corporation have sufficient retained earnings before it may declare cash dividends?