HADM_121_Chapter11_Final 1 - E11-18 2.: IF the shares are...

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[Type the document title] November 7, 2007 E11-3 2). If Kelly needed additional capital, they should sell common stock at no par value because there is less liability for the business because there is no PAR value, and they don’t have to pay dividends to the common stock shareholders immediately.
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[Type the document title] November 7, 2007 E11-16 2). The purchase of treasury stock have on dividends paid: decreases the liability for dividends payable 3). No effect, GAPP does not allow a company to make money off investing in itself
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Unformatted text preview: E11-18 2.: IF the shares are cumulative, the preferred stock holders must be paid for the dividends that they did not receive for the past two years before the common stock holders can be paid. The preferred stockholders get priority because they have no voting rights. 3. If the preferred stock is not cumulative [Type the document title] November 7, 2007 P11-2...
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HADM_121_Chapter11_Final 1 - E11-18 2.: IF the shares are...

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