Question

In: Accounting

Shares In what ways can shares be “preferred”? In which ways are they similar and different...

Shares

  1. In what ways can shares be “preferred”? In which ways are they similar and different from common shares? Give real-world examples.
  2. 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

  1. Discuss at least three main issues a board of directors considers when making a dividend declaration decision.
  2. How does a share dividend differ from a share split?

Retained Earnings

e) Explain why companies place restrictions on some of their retained earnings.

Solutions

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