This preview shows page 1. Sign up to view the full content.
Unformatted text preview: orporate Ownership Voting rights. Dividends. Stockholder Benefits Residual claims. Preemptive rights.
5 Elected by shareholders 6 Equity Versus Debt Financing
Advantages of equity and debt financing. Advantages of equity and debt financing.
Advantages of equity Equity does not have to be repaid. Dividends are optional. Advantages of debt Interest on debt is tax deductible. Debt does not change stockholder control. 7 8 Authorization, Issuance, and Repurchase of Stock
Outstanding shares are issued shares that are owned by stockholders. Issued shares Unissued shares are authorized of stock are Outstanding The stock number of Unissued shares of maximumshares that have Shares of shares that have been capital stockbeen never Shares that can distributed to be issued to the to distributed Treasury shares are issued stockholders.public. stockholders. Treasury shares that have be...
View Full Document
This document was uploaded on 03/13/2014 for the course BUS 021 at UC Riverside.
- Spring '08