Stockholders' Equity: Classes of Capital Stock

Learning objectives

After studying this chapter, you should be able to:

  • State the advantages and disadvantages of the corporate form of business.
  • List the values commonly associated with capital stock and give their definitions.
  • List the various kinds of stock and describe the differences between them.
  • Present in proper form the stockholders' equity section of a balance sheet.
  • Account for the issuances of stock for cash and other assets.
  • Determine book values of both preferred and common stock.
  • Analyze and use the financial results – return on average common stockholders' equity.

Source: Textbook Equity,
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