capital 6 Legal 7. Cumulative feature 8 Par value 9Treasury stock 10 Paid-in capital dividend and announces it to stockholders. g. A corporation's distribution of cash or stock to its stockhol a pro rata (proportional) basis. h. Total amount paid-in on capital stock. i. Preferred stockholders have a right to receive current and prior-year dividends before common stockholders receive dividends j. A pro rata distribution of cash to stockholders. Il. True or False - Determine if the following statements are True (T) or False (F). (30 points) 1 When no-par value stock does not have a stated value, the entire proceeds from the issuance 2A corporation can issue more shares than it is authorized in its charter, if the board of directors 3. Each stockholder in a corporation has a separate capital account in the stockholders' equity se 4 Dividends are declared out of retained earnings. the stock become legal capital. of an increase in the number of authorized shares of the balance sheet .When a corporation has only one class of capital stock, it is identified as preferred stock. Retained earnings are a part of stockholders' equity Stock can be issued only in exchange for cash. Treasury stock is a contra stockholders' equity account. Preferred stockholders generally do not have the right to vote for the board of directors. Dividends in arrears on cumulative preferred stock are considered a liability