Examine the notes at the bottom of the balance sheet

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Reference no: EM132605066 , Length: Word count : 700

Problem 1: Explain why corporations issue stocks. Are corporations required to pay dividends? Explain. Why do corporations pay dividends? What are retained earnings, and why are they important. Explain your answer.

Problem 2: Describe the difference between common and preferred stocks. Why do corporations sell preferred stocks? Explain your answer.

Problem 3: Review the stockholders′ equity section of the balance sheet. Did your selected corporation have any preferred stock at end of the year? If yes, what is the amount?

Problem 4: Examine the notes at the bottom of the balance sheet. Is your selected corporation authorized to issue preferred stock? If so, how much?

Problem 5: How much of your selected corporation′s common stock was outstanding at end of year? How can you tell?

Reference no: EM132605066

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