1. Why would a corporation issue both common or preferred stock?

2. If a corporation issued 50,000 shares of $100-par value, 8% preferred stock, what is the annual per share dividend on the preferred stock?

3. Why is disclosing dividends in arrears on preferred stock important?

4. Why would a corporation issue callable preferred?

5. List 2 reasons that a corporation would purchase back issue shares as treasury shares.

6. What is the pre-emptive rights of common shareholders?

7. What is retained earnings restriction? How are retained earnings restrictions disclosed on the financial statements?

8. Under what conditions must diluted earnings per share be computed? How is diluted earnings per share computed?

9. What is the difference between net income and comprehensive income? List one way in which comprehensive income can be disclosed in the financial statements.