Chapter 11, Problem 1BTN

To determine

Dividends:

It is the amount of profit that is distributed among shareholders of the company. It can be distributed in two ways, one is cash dividend and other is stock dividend.

Treasury Stock:

It is the type of stock that company keeps with itself either by not issuing the shares or by buying back of shares.

Common Stock:

It shows the total amount of money that the owner has in this business. Owner use their right of being owner by voting for important matters in the general meetings of the company.

Preferred Stock:

Preferred stock is a sort of stockholder’s capital which has special right as comparison to equity to shareholder, like fixed dividend and preferential treatment in event of liquidation and payment of dividend.

1.

To identify: Number of common stock issued and outstanding at 2015 and 2014 and explain its comparison with weighted average common stock of 2015 and 2014.

2.

To determine

To identify: Book value of entire common stock.

3.

To determine

To identify: Cash dividend to common stock in 2015 and 2014.

4.

To determine

To identify: Basic earnings per share of fiscal year 2015, 2014 and 2013 and explain any notable changes.

5.

To determine

To identify: Number of shares in treasury stocks in 2015 and 2014.

6.

To determine

To identify: Number of common shares outstanding and common shares cash dividend increased since that date.