In the Chart Below,assign the Directional Effect (I = Increase,D

question 32

Essay

In the chart below,assign the directional effect (I = increase,D = decrease,or NE = no effect)of each of the following four transactions on the components of the book value of common shareholders' equity.
a.Recognition of compensation expense related to restricted stock.
b.Granting of stock appreciation rights to be settled with cash.
c.Recognition of compensation expense on stock appreciation rights.
d.Reacquisition and retirement of common stock at an amount greater than original issue price.
$$\begin{array} { | c | c | c | c | l | l | l | } \hline \text { Item } & \begin{array} { c } \text { Common } \\\text { Stock }\end{array} & \begin{array} { c } \text { Additional } \\\text { Paid-In } \\\text { Capital }\end{array} & \begin{array} { c } \text { Deferred } \\\text { Compensation }\end{array} & \begin{array} { c } \text { Retained } \\\text { Earnings }\end{array} & \begin{array} { c } \text { Treasury } \\\text { Stock at } \\\text { Cost }\end{array} & \begin{array} { c } \text { Total Common } \\\text { Shareholders? } \\\text { Equity }\end{array} \\\hline \text { a. } & & & & & & \\\hline \text { b. } & & & & & & \\\hline \text { c. } & & & & & & \\\hline \text { d. } & & & & & & \\\hline\end{array}$$

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Definitions:

Payday Lender

A financial institution that offers high-interest, short-term loans, usually due on the borrower's next payday.

Proxy Statement

A document containing the information that a company is required by law to provide to shareholders to solicit proxies for voting at a shareholder meeting.

Affirmative Covenants

Provisions in a loan agreement requiring the borrower to undertake certain actions or meet specific conditions.

Negative Covenants

Restrictions in loan agreements that prohibit certain actions by the borrower, intended to protect the interests of the lender.