Name Chapter 11 169 12. A corporation announced a 5-for-1 stock split of its $100 par value stock. which is currently trading for The estimated market value of the stock after the split is is a distribution of shares of stock to its stockholders. 14. The value is the monetary amount printed on a stock certificate. 15. In computing earnings per share, net income less any preferred dividends is divided by the MULTIPLE CHOICE Instructions: Circle the best answer for each of the following questions. 1. Which of the following is not a characteristic of the corporate form of organization? a. ownership represented by shares of stock b. separate legal existence c. unlimited liability of stockholders d. earn subject to the federal income tax ings 2. The amount printed on a stock certificate is known as: a. stated value b. premium c. discount d. par value 3. Assume that a corporation has outstanding 5,000 shares of $6 cumulative preferred stock of $100 par and no dividends have been paid for the preceding four years. What is the amount of preferred dividends that must be declared in the current year before a dividend can be declared on common stock? a. $30,000 b. $90,000 c. $120,000 d. $150,000