We discuss the final part of the balance sheet: stockholders' equity this week. Please discuss the following after the careful reading of the module;

1. differences between debt financing and equity financing

2. accounting differences between preferred stock and common shares.

3. accounting for treasury shares; why do firms want to buy back their own shares? How do firms use their treasury shares?

4. accounting for cash dividend and stock dividend;

5. Accumulated Other Comprehensive Income (AOCI): why are they disclosed in stockholders' equity section?

6. How do you compute EPS? Please comment on the WSJ article I posted (GE's Numbers Game)