Carlton Industries Has Identified the Following Items and Would Like

question 169

Multiple Choice

Carlton Industries has identified the following items and would like you to answer a few questions about their effect on Stockholders' Equity.
-Which item results in no change to stockholders' equity?

• A)Preferred stock issued by Carlton
• B)Amount received by Carlton in excess of par value when preferred stock was issued
• C)Dividends in arrears on Carlton preferred stock
• D)Cash dividend declared but unpaid on Carlton stock
• E)Stock dividend declared but unissued by Carlton
• F)Treasury stock
• G)Amount received in excess of cost when treasury stock is reissued by MJ
• H)Retained earnings

---

Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, considered essential for assessing its financial health.

Constant Rate

A constant rate refers to a fixed percentage that does not change over time, often used in contexts such as growth rates or interest rates.

Dividend Growth Model

A valuation method used to estimate the price of a stock by using predicted dividends and discounting them back to their present value.

Dividend Yield

This financial statistic demonstrates a company's dividend payments per year compared to its current stock price.