Chap 15. Stockholders' Equity Flashcards
Book value per share
850
Additional paid-in capital
825
A value that is often included in the contributed surplus account in the shareholders’ equity section of a company’s balance sheet. The account represents the excess paid by an investor over the par-value price of a stock issue
Callable preferred stock
835
A type of preferred stock in which the issuer has the right to call in or redeem the stock at a preset price after a defined date.
Cash dividends
839
Money paid to stockholders, normally out of the corporation’s current earning or accumulated profits. All dividends must be declared by the board of directors and are taxable as income to the recipient.
Common stock
824
A security that represents ownership in a corporation
Contributed (paid-in) capital
824
An entry on the shareholders’ equity section of a company’s balance sheet that summarizes the total value of stock that shareholders have directly purchased from the issuing company.
Convertible preferred stock
835
Cost method
831
Cumulative preferred stock
835
Dividends in Arrears
835
Earned capital
824
Large stock dividend
845
Leveraged buyout (LBO)
830
Liquidating dividends
839 841
Lump-sum sale
827
No par stock
826
Paid-in Capital in Excess of Par
825
Par (stated) value method
831
Participating preferred stock
835
Payout ratio
849
Preemptive right
823
Preferred stock
824 834
Property dividends
840
Redeemable preferred stock
835
Residual interest
825
Retained earnings
824
Return on common stock equity
849
Small (ordinary) stock dividends
842
Stated value
826
Statement of Stockholders Equity
848
Stock dividends
841
Stock split
843
Stockholders’ (owners’) equity
825
Trading on the equity
849
Treasury stock
830
