Chapter 10: Equity Financing
- Page ID
- 98046
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- LO1 – Identify and explain characteristics of the corporate form of organization and classes of shares.
- LO2 – Record and disclose preferred and common share transactions including share splits.
- LO3 – Record and disclose cash dividends.
- LO4 – Record and disclose share dividends.
- LO5 – Calculate and explain the book value per share ratio.
Corporations sometimes finance a large portion of their operations by issuing equity in the form of shares. This chapter discusses in detail the nature of the corporate form of organization, the different types of shares used to obtain funds for business activities, and how these transactions are recorded. It also expands on the concept of dividends.