Assume you are the chief accountant making a presentation duringthe stockholders annual meeting for...

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Accounting

Assume you are the chief accountant making a presentation duringthe stockholders annual meeting for your corporation. Provide abrief explanation to stockholders on each of the followingquestions:
Shares
In what ways can shares be “preferred”? In which ways are theysimilar and different from common shares? Givereal-world examples.
How does the book value of shares of stock differ from themarket value of shares of stock? Use a real-world example in youranswer.
Dividends
Discuss at least three key issues that a board of directorsconsiders when making a dividend declaration decision.
How does a share dividend differ from a share split?
Retained Earnings
Explain why companies place restrictions on some of theirretained earnings.

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3.7 Ratings (321 Votes)

1 Company has mainly two ways to Raise the capital in which common stock is more popular than the preferred stock Though Preferred stock has similar characteristics like common stock but they differ in few aspects Company issues preferred stock to maintain the debt equity ratio as it helps to gain leverage which helps in future financials needs of the business Its considered as preferred as its provide consistent dividend and also in case of wind up preferred stockholders receive assets before common stockholders See Answer

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In: AccountingAssume you are the chief accountant making a presentation duringthe stockholders annual meeting for your...Assume you are the chief accountant making a presentation duringthe stockholders annual meeting for your corporation. Provide abrief explanation to stockholders on each of the followingquestions:SharesIn what ways can shares be “preferred”? In which ways are theysimilar and different from common shares? Givereal-world examples.How does the book value of shares of stock differ from themarket value of shares of stock? Use a real-world example in youranswer.DividendsDiscuss at least three key issues that a board of directorsconsiders when making a dividend declaration decision.How does a share dividend differ from a share split?Retained EarningsExplain why companies place restrictions on some of theirretained earnings.