Question
Assume you are the chief accountant making a presentation during the stockholders' annual meeting for your corporation. Provide a brief explanation to stockholders on each
Assume you are the chief accountant making a presentation during the stockholders' annual meeting for your corporation. Provide a brief explanation to stockholders on each of the following questions:
Shares
a.In what ways can shares be "preferred"? In which ways are they similar and different from common shares?Give real-world examples.
b.How does the book value of shares of stock differ from the market value of shares of stock? Use a real-world example in your answer.
Dividends
a.Discuss at least three main issues a board of directors considers when making a dividend declaration decision.
b.How does a share dividend differ from a share split?
Retained Earnings
Explain why companies place restrictions on some of their retained earnings.
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