Chapter 13, Problem 13.1TIATC

To determine

Dividend Policy:

The dividend policy refers to the plan of the corporation to distribute its earnings amongst the shareholders. A company may distribute huge dividend if it has sufficient profits and it may also retain a large amount of earnings in case it has more investment opportunities in the business. The policy of distributing and retaining profits is called the dividend policy.

Treasury stock:

Treasury stock is the shares bought back by the company itself. A company may purchase its own shares and the shares bought back are called treasury stock.

1. Dividend Policy of Facebook:

To indicate:

The dividend policy of Facebook in its 2015 annual report

To determine

2. Par value of Class A common shares:

To indicate:

The Par value of Class A common shares of Facebook Inc.

To determine

3. Treasury Stock:

To determine:

If Facebook Inc has any treasury stock