Answer the following questions for the Mulatto brothers. a) How are paid-in-capital and retained earnings: - Similar? - Different? b) What are the main categories of paid-in capital? c) When does a company declare a cash dividend?
Matthew Mulatto and his brother John Mulatto plans to open a business. The major decision they face is how to organize the business. They expect to generate a massive profit during the first year. Although they have enough to start the business now as a
Requirements:
1. Answer the following questions for the Mulatto brothers.
a) How are paid-in-capital and
- Similar?
- Different?
b) What are the main categories of paid-in capital?
c) When does a company declare a cash dividend?
d) Which characteristic of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation?
e) What does the term par value of stock mean?
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