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Chapter 11: Shareholders’ Equity – Structure, Transactions, and Analysis

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Characteristics of a Corporation

Shares Authorized, Issued, and Outstanding

Issuing Par Value Stock

Retained Earnings

Treasury Stock

Dividends and Dividend Preferences

Stock Dividends

Stock Splits

Treasury Stock

Introduction to Ratios

Ratios: Price-Earnings Ratio (PE Ratio)

Ratios: Payout Ratio

Ratios: Dividend Yield Ratio

Ratios: Return on Equity (ROE)