Why does the preferred stockholders' equity section of the balance sheet change only when new shares are sold or repurchased,

whereas the common stockholders' equity section changes from year to year regardless of whether new shares are bought or sold?


Preferred stock is a fixed perpetuity. Common equity consists of the paid in capital plus changes in retained earnings. The portion of net income not paid as dividends to common stock holders becomes additions to retained earnings for the firm. Because this money belongs to the shareholders but is being retained by the firm and reinvested, it is considered an addition to the equity provided by common shareholders.

Business

You might also like to view...

A promise to make a gift for a charitable or educational purpose is unenforceable unless and until the institution to which to promise was made incurs obligations by relying on the promise. This exception is usually justified on the basis of either ________ or ________.

A. the Statute of Frauds; the applicable statute of limitations B. estoppel; public policy C. criminal law; civil law D. substantial performance; forbearance

Business

This question contains multiple parts; be sure to answer all of them. First, define and explain strategic control. Next, summarize Bryan Barry's suggestions for keeping strategic planning on track. Finally, suppose you are the owner of a dog-walking service with eight dog-walkers on staff. Explain how you would implement each of Barry's suggestions.

What will be an ideal response?

Business

Which message execution style involves presenting survey data indicating that a brand is better than other brands?

A) scientific evidence B) testimonial evidence C) endorsement D) technical expertise E) slice of life

Business

Keeping in mind the rules for pronoun casing, when a pronoun is part of the compound subject, use the:

A. nominative case. B. objective case. C. possessive case. D. infinitive case.

Business