Complete the following:
1. Which stock offers shareholders preference in receiving dividends?
2. Paid-in capital includes ________
3. Stock that has been sold and then repurchased by the issuing corporation is called ________ stock.
4. The owners of common stock do NOT have the specific right to ________.
5. AZ Best, Inc.'s corporate charter allows it to issue 1,500,000 shares of common stock. In 2011, its first year of business, the company sold 200,000 shares of common stock. In 2011, the company bought back 5,000 shares to be held as treasury stock. At December 31, 2011, how many shares of common stock are authorized?
6. AZ Best, Inc.'s corporate charter allows it to issue 1,500,000 shares of common stock. In 2011, its first year of business, the company sold 200,000 shares of common stock. In 2011, the company bought back 5,000 shares to be held as treasury stock. At December 31, 2011, how many shares of common stock are outstanding?
7. Cartier, Inc.'s corporate charter authorizes it to sell 1 million shares of $0.50 par value common stock. As of December 31, 2011, the company had sold 500,000 shares for $4 each. Cartier has 20,000 shares of treasury stock that cost $100,000. On the December 31, 2011 balance sheet, the number of shares issued is ________ shares.
8. Distributions of a corporation's earnings to its shareholders are called ________.
9. The date of payment is the date ________.
10. Noncumulative preferred stock means that ________.
11. Dividends ________.
12. When a company buys shares of its own stock and holds them as treasury stock, ________.
13. A corporation's distribution of new shares of stock to the corporation's current shareholders is called a ________.
14. Retained earnings is the ________.
15. Team Shirts issued 20,000 shares of stock for $20 per share. This transaction increased Cash $400,000 and increased ________ $400,000.
16. PDG Corporation had a return on equity of 18%. Beginning and ending shareholders' equity for the corporation were $570,000 and $560,000 respectively. There were 350,000 common shares and no preferred shares outstanding. What was net income for the year?
17. Use the following information for Equitable, Inc. to answer the following question(s). Equitable issued no new common stock and had 100,000 common shares issued and outstanding during 2011. Equitable has no preferred stock.
Net income for the year ended, December 31, 2011$370,000
Retained earnings, December 31, 2010$280,000
Retained earnings, December 31, 2011$360,000
Total shareholders' equity at December 31, 2011$725,000
Total liabilities at December 31, 2010$105,000
Total liabilities at December 31, 2011$385,000
Total assets at December 31, 2010$750,000
What was return on equity for the year ended December 31, 2011?
18. Earnings per share is ________.
19. A measure of how well a company produces income with the amount of investment that common shareholders have made in the company is the ________
20. Risks associated with owning an investment in a company's stock include the risk that ________.