Question: 1. What is the difference between debt financing and equity financing? 2. What are accounting differences between preferred stock and common shares? 3. For accounting

1. What is the difference between debt financing and equity financing?

2. What are accounting differences between preferred stock and common shares?

3. For accounting for treasury shares, why do firms want to buy back their own shares? How do firms use their treasury shares?

4. What is the difference between accounting for cash dividend and stock dividends?

5. Accumulated Other Comprehensive Income (AOCI): Why are they disclosed in stockholders' equity section?

6. How do you compute EPS?

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