accounting ch 11

equity financing advantages

equity does not have to be repaid, dividends are options

debt financing advantages

interest on debt is tax deductible, debt does not change stockholder control

what is contributed capital made up of

common stock and additional paid in capital

outstanding shares

issued and owned by stockholders

treasury shares

issued and reacquired by the corporation

market price

amount each stock will sell for

Initial public offering (IPO)

the first time a corporation issues stock to the public

does common or preferred stock has voting rights

common stock

does common or preferred stock have fixed dividend rates

preferred stock

which type of stock has priority for liquidation and dividends

preferred stock