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

question 24

Essay

In the chart below,assign the directional effect (I = increase,D = decrease,or NE = no effect)of each of the following six transactions on the components of the book value of common shareholders' equity.
a.Issuance of $1 par value common stock at an amount greater than par value.
b.Donation by a governmental unit to a corporation.
c.Cash dividend declared.
d.Previously declared cash dividend paid.
e.Property dividend declared and paid.
f.Large stock dividend declared and issued.

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Definitions:

Borrowed

The act of obtaining or receiving funds or goods with the promise or understanding of returning or repaying the lender at a later date, usually with interest.

Interest Rate

The proportion, in a percentage, at which interest is paid by borrowers for the use of money that they borrow from a lender. It is a critical component of the credit markets.

Years

A unit of time equal to 365 days (or 366 days in a leap year), used in calendar timekeeping.

Present Value

The value right now of a sum of money expected in the future or a sequence of cash inflows, factoring in a specific rate of return.