Q1. The total amount of financing received from shareholders since incorporation is ____________ million and is generally referred to as ____________. Common stock of the Coca-Cola Company was originally issued (____________ / at / below / can’t tell) par at an average price of ____________ per share.
Q2. When additional shares of common stock are issued, this event will:
a. (____________/ decrease / have no effect on) total assets,
b. (increase / decrease / ____________) net income,
c. (____________/ decrease / have no effect on) stockholders’ equity, and
d. (increase / ____________/ have no effect on) earnings per share.
Q3. The amount of net income retained in the business and not yet distributed as dividends to the shareholders is ____________million, which is generally referred to as ____________.
Q4. Retained earnings (is / ____________) a reservoir of cash available for dividends.
Q5. Treasury stock is considered (____________/ outstanding / retired) but no longer (issued / ____________/ retired). The average price paid for treasury stock is approximately ____________ per share.
Q6. When a company buys back its own stock, this event will:
a. (increase / ____________/ have no effect on) total assets,
b. (increase / decrease / ____________) net income,
c. (increase / ____________/ have no effect on) stockholders’ equity, and
d. (____________/ decrease / have no effect on) earnings per share.
Q7. The number of common shares currently outstanding is ____________million shares, which represents 100% ownership of the company.
Q8. Total stockholders' equity is ____________million, which is the amount of business assets owned by shareholders.
Q9. List several factors that would attract you to purchase shares of stock in a particular corporation.