You are an investor in the common stock of Malapoosa Company. You notice in the firms most

Question:

You are an investor in the of Malapoosa Company. You notice in the firm’s most recent annual report that net income was $3.75 million but that the net income available for common stockholders was only $3.0 million. Explain the difference between the two amounts.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...