{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Ch11 - Equity - 11-1 Chapter 11 Stockholders Equity...

Info icon This preview shows pages 1–13. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 11 – Stockholders’ Equity Characteristics of a corporation Characteristics of stock Issuing common stock Treasury stock Cash dividends, stock dividends and stock splits Preferred stock 11-1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Characteristics of a corporation 11-2
Image of page 2
. 1 Publicly-held corporations May have many stockholders. Stock is traded on a national exchanges (NYSE, etc.) Example: DineEquity 2. Privately-held corporations Usually have only a few stockholders. Does not offer its stock for sale to the general public. Example: Levi Strauss Classification of Corporations 11-3
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Advantages of a Corporation 11-4 Advantages of a corporation Continuous life Easy to transfer ownership Provides limited liability What is the maximum liability? How is this done? What does this mean?
Image of page 4
Disadvantages of a Corporation 11-5 Disadvantages of a corporation Double taxation of earnings Government regulations Corporate management Why is this an issue? What laws impact companies? Who is taxed?
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Separate Legal Entity Because a corporation is a separate legal entity , it can . . . Own assets Sue and be sued Incur liabilities Enter into contracts 11-6
Image of page 6
Stockholders’ Rights 1. Vote : in person or by proxy. 11-7 1. Dividends : proportionate distribution of profits. 1. Preemptive right : keep the same percentage ownership when new shares are issued. 1. Residual claim : Proportionate distributions of assets in a liquidation
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Corporate Organization Chart Elected by shareholders Appointed by directors Vice President Operations Vice President Marketing Vice President Finance Vice President President Chairman and Board of Directors Stockholders Personnel 11-8
Image of page 8
Stockholders’ Equity – Components DineEquity December 31, 2008 (Amounts in $000’s except per share data) 11-9 Stockholders' equity Preferred stock, $1 par value, 220,000 shares authorized, 190,000 shares issued and outstanding …………………. 87,050 Common stock, $.01 par value, 40,000,000 shares authorized, 23,696,950 shares issued and 17,466,355 shares outstanding …………………………………………... 237 Additional paid-in-capital ……………………………………… 165,315 Retained earnings ……………………………………………… 145,810 Treasury stock, at cost (6,230,595 shares) ………………… (276,519) Other ……………………………………………………………… (29,408) Total Stockholders’ equity 42,767
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Characteristics of stock 11-10
Image of page 10
Authorized, Issued, and Outstanding Capital Stock The maximum number of shares of capital stock that can be sold to the public. Authorized Shares 11-11
Image of page 11

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Authorized, Issued, and Outstanding Capital Stock Authorized Shares Issued shares are authorized shares of stock that have been sold.
Image of page 12
Image of page 13
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern