Ch12 - Corporations and Paid-in Capital Flashcards Preview

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Flashcards in Ch12 - Corporations and Paid-in Capital Deck (3)
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1

How to calculate dividends for

Preferred stock

Common stock

Preferred:

% * share count * share par $ * how many dividends being paid out

Common:

Remainder after preferred is paid out

2

Return on Assets = ...

Return on Assets = Net Income / Total Assets

3

When issuing stock to purchase a building (asset), the value of the building should be recorded at:

A) Par value of the stock
B) Its book value
C) a value assigned by the board of directors
D) The market value

When issuing stock to purchase a building (asset), the value of the building should be recorded at:

The market value of the building