Suppose Bala Ltd. issued 1,400 shares of its $4.50 preferred shares for $110.00 per share. By how

Question:

Suppose Bala Ltd. issued 1,400 shares of its $4.50 preferred shares for $110.00 per share. By how much would this transaction increase the company's contributed capital? By how much would it increase retained earnings? By how much would it increase annual cash payments?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...