MGT 210 Lecture Notes - Lecture 11: Treasury Stock, Cash Cash, Preferred Stock
Document Summary
Dividend amount = (% x par value) 100 par at 7% pays per share. A corporation is an entity created by law that is separate and distinct from its owners. Ownership rights of shareholders: vote in election of board of directors, share in corporate earnings through dividends, maintain same % of ownership when additional shares of stock are issued, share in assets upon liquidation (residual claim) Authorized stock: the amount of stock the corporation is allowed to sell; doesn"t require entry. Assigned a par value- an arbitrary amount that we use to record. Often assign a stated value to no-par shares (treated the same as par) Neither equals the market value of the stock. Paid in capital- amount paid by stockholders in exchange for stock. Retained earnings- earned capital held for future use in business. Treasury stock- stock reacquired by the corporation for future use- accounted for by cost method.
