M7 Vocab

4. A measure of the company’s ability to service its debt
5. Preferred stock that allows preferred shareholders the right to receive an amount in excess of the stated dividend
7. The distribution of additional shares of the corporation’s stock to existing shareholders
10. A right of common shareholders that allows them to maintain their percentage interest in the corporation when it
11. Preferred stock that allows a shareholder to turn in (redeem) the preferred stock for cash at the shareholder’s op-
13. Stock with a minimum issue price or stated value established by the corporation’s board of directors but no par
15. new shares of common stock
17. specified in the charter
19. Repurchased issued shares that the corporation will never reissue
20. Stock that does not have a minimum price assigned to each share of stock
21. A ratio that measures the proportion of income available to provide a return for common shareholders

1. The distribution of specific noncash assets to the shareholders of a corporation
2. Price agreed to buy a willing unrelated buyer and seller
3. The corporation’s recall of its old shares of stock and issuance of a larger number of new shares in their place
6. The corporation’s recall of its old shares of stock and issuance of a smaller number of new shares in their place
8. An ownership interest in a corporation with special privileges or preferences as to liquidation and dividends
9. A ratio that measures the performance of the company in terms of the owners’ investment
10. An arbitrary value assigned to shares of capital stock that is approved by the state in which the business is
12. The number of shares issued and held outside the corporation
14. The shares of a corporation’s issued stock that the corporation has repurchased and intends to reissue at a
16. date
18. or amount