Question;Week Three Discussion Questions;?;Why does a company choose to;form as a corporation? What are the steps required to become a corporation?;What are the advantages and disadvantages of the corporate form of doing;business?;?;Why is preferred stock referred;to as preferred? What are some of the;features added to preferred stock that make it more attractive to investors?;Would you select preferred stock or common stock as an investment? Why?;?;What are the different types of;dividends corporations may issue? When should a corporation pay dividends? Do;you prefer a stock dividend or a cash dividend? Why?;?;Why do corporations buy back;their own stock? What does it tell you about the corporation? What effect does;the purchase have on the price of a company?s stock?;?;Chen, Inc. purchases 1,000;shares of its own previously issued $5 per common stock for $12,000. Assuming;the shares are held in the treasury, what effect does this transaction have on;(a) net income, (b) total assets, (c) total paid-in capital, and (d) total;stockholders? equity? Chen, Inc?s treasure stock is resold for $15,000. What;effect does this transaction have on (a) net income, (b) total assets, (c);total paid-in capital, and (d) total stockholders? equity?
Paper#43749 | Written in 18-Jul-2015Price : $21