Summer2010405ch15

Summer2010405ch15 - Chapter 15 Capital Stockholders Equity...

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Chapter 15 Capital – Stockholders’ Equity or Owners’ Equity Corporate law is state law. Common Stockholders have a residual interest in the corporation after 1) Creditors 2) Preferred Stockholders Preferred Stockholders have preference as to dividends and liquidation. Preferred Stock dividend 10% $100 Par Preferred Stock How much is the dividend? Common Stock Preferred Stock Right to vote No voting rights Residual interest Preference as to dividends and liquidation Preemptive Right If new shares are issued by the corporation, each shareholder has the right to purchase new shares proportionate to their percentage of ownership.
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Issuance of stock 1. You issue 100 shares of $10 par Common at $20/share. Cash Common Stock Additional Paid in Capital, Common Stock 2. You issue 100 shares of no par Common Stock at $20/share. Cash Common Stock Important Terms Authorized Shares = # of shares authorized by the Secretary of State Issued Shares = # of shares sold Outstanding Shares = # of shares sold by us – shares repurchased by us
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This note was uploaded on 11/05/2011 for the course ACCT 405 taught by Professor Caylor during the Summer '11 term at South Carolina.

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Summer2010405ch15 - Chapter 15 Capital Stockholders Equity...

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