The total amount of stock that a corporation\'s charter allows it to issue is re

Question

The total amount of stock that a corporation's charter allows it to issue is referred to as o A) Issued stock. B) Outstanding stock. C) Common stock D) Preferred stock E) Authorized Stock. 14. Stockholders' equity consists of A) B) C) D) E) Long-term assets. Contributed capital and retained earnings. Contributed capital and par value. Retained earnings and cash. Premiums and discounts. 15. Owners of preferred stock often do not have: A) Ownership rights to assets of the corporation B) C) D) E) Voting rights. Preference to dividends. The right to sell their stock on the open market. Preference to assets at liquidation. A company issued 7% preferred stock with a $100 par value. This means that A) B) C) D) E) 16. Preferred shareholders have a guaranteed dividend. The amount of the potential dividend is $7 per year per preferred share. Preferred shareholders are entitled to 7% of the annual income. The market price per share will approximate $100 per share. Only 7% of the total contributed capital can be preferred stock. A company has 2,000 shares of$1 par value common stock and 200 shares of 5%,S110 par, non-cumulative preferred stock outstanding. The balance in Retained Earnings at the beginning of the year was $500,000. Net income for the current year was $300,000. If the company paid all of its dividends, including a dividend of $2 per share on its common stock, what is the balance in Retained Eamings at the end of the year? A) $ 800,000 B) $ 805,100 C) $ 794,900 D) $ 494,900 E) $ 194,900 17.

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

13)

Authorized stock is the maximum number of shares that an organization can issue as stated in its charter. Authorized stock is generally far more than the issued stock of an organization

So, option E is the correct option

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