Calculating an organization’s net income

Intermediate Accounting, Ch. 15

Stock Options/Stock Compensation (SELINA STEWART )

Why do companies offer stock options?

Should stock-option compensation be included as an expense when calculating an organization’s net income? Explain why or why not. If so, how should the amount of expense be calculated?

Intermediate Accounting, Ch. 16

Common and Preferred Stock/Dividends/Stock splits

( SELINA STEWART)

What are some similarities and differences between common stock and preferred stock?

As a shareholder, would you want preferred or common stock? Explain your answer

As a corporation, would you rather issue preferred or common stock? Explain your answer.

What are the different types of dividends that a company can pay out? Which type would you prefer? Explain your answer.

When should a company pay dividends?

What is the purpose of a stock split? What are some benefits of a stock split for a company?

What are some benefits for an investor? What is the effect to the market value of the stock?

Solution preview for the order on calculating an organization’s net income

APA

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