$1.$ What are the basic ownership rights of common stockholders in the absence of restrictive provisions?

$2.$ What are the two principal components of stockholders$$ equity?

a$.$ What is paid$-$in capital? Give three examples.

$3.$ How does the balance sheet for a corporation differ from the balance sheet for proprietorship?

$4.$ What factors help determine the market price of stock?

$5.$ Why is common stock usually not issued at a price that is less than par value?

$6.$ For what reasons might a company like IBM repurchase some of its stock $($treasury stock$)?$

$7.$ What are the principal differences between common stock and preferred stock?

a$.$ Preferred stock may be cumulative. Discuss this feature.

b$.$ How are dividends in arrears presented in the financial statements?

$8.$ Identify the events that result in credits and debits to retained earnings.

$9.$ Indicate how each of the following accounts should be classified in the stockholders$$ equity section.

a$.$ Common stock

b$.$ Paid$-$in capital in excess of par $$ common stock.

c$.$ Retained earnings

d$.$ Treasury stock.

e$.$ Paid$-$in capital in excess of stated value$-$ common stock.

f$.$ Preferred stock

$10.$ Jan Kimler maintains that adequate cash is the only requirement for the declaration of a cash dividend. Is Jan correct? Explain.

$11.$ Contrast the effects of a cash dividend and a stock dividend on a corporation$$s balance sheet.

$12.$ What is the purpose of a retained earnings restriction? Identify the possible causes of retained earnings restrictions.

$13.$ What is the formula for the payout ratio? What does it indicate?