When a company issues bonds, it is engaging in a form of

1. external debt financing

2. internal debt financing

3. internal equity financing

4. external equity financing

When a company issues common stock, it is engaging in a form of

1. external debt financing

2. internal debt financing

3. internal equity financing

4. external equity financing

Par value

1. is important for common stock because all common stock must have a stated par value

2. is important for common stock because common stock dividends are sometimes stated as a percentage of par value

3. is important for preferred stock because preferred stock dividends are sometimes stated as a percentage of par value

4. is not important for preferred stock because all preferred stock are issued with no par value

The number of shares of common stock that a company has actually sold are called

1. issued shares

2. authorized shares

3. treasury shares

4. outstanding shares

The number of outstanding shares is equal to

1. the number of issued shares minus the number of authorized shares

2. the number of authorized shares minus the number of issued shares

3. the number of issued shares minus the number of treasury shares

4. the number of treasury shares minus the number of issued shares

5. the number of authorized shares minus the number of treasury shares

6. the number of treasury shares minus the number of authorized shares