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1. Boundless Lecture Slides Available on the Boundless Teaching Platform Free to share, print, make copies and changes. Get yours at www.boundless.com

2. Using Boundless Presentations Boundless Teaching Platform Boundless empowers educators to engage their students with affordable, customizable textbooks and intuitive teaching tools. The free Boundless Teaching Platform gives educators the ability to customize textbooks in more than 20 subjects that align to hundreds of popular titles. Get started by using high quality Boundless books, or make switching to our platform easier by building from Boundless content pre-organized to match the assigned textbook. This platform gives educators the tools they need to assign readings and assessments, monitor student activity, and lead their classes with pre-made teaching resources. Get started now at: • The Appendix The appendix is for you to use to add depth and breadth to your lectures. You can simply drag and drop slides from the appendix into the main presentation to make for a richer lecture experience. http://boundless.com/teaching-platform • Free to edit, share, and copy Feel free to edit, share, and make as many copies of the Boundless presentations as you like. We encourage you to take these presentations and make them your own. If you have any questions or problems please email: educators@boundless.com Free to share, print, make copies and changes. Get yours at www.boundless.com

3. About Boundless • Boundless is an innovative technology company making education more affordable and accessible for students everywhere. The company creates the world’s best open educational content in 20+ subjects that align to more than 1,000 popular college textbooks. Boundless integrates learning technology into all its premium books to help students study more efficiently at a fraction of the cost of traditional textbooks. The company also empowers educators to engage their students more effectively through customizable books and intuitive teaching tools as part of the Boundless Teaching Platform. More than 2 million learners access Boundless free and premium content each month across the company’s wide distribution platforms, including its website, iOS apps, Kindle books, and iBooks. To get started learning or teaching with Boundless, visit boundless.com. Free to share, print, make copies and changes. Get yours at www.boundless.com

4. Understanding the Corporation Reporting of Stockholders' Equity Stock Transactions Rules and Rights of Common and Preferred Stock Additional Detail on Preferred Stock ] Dividend Policy Reporting of Stockholders' Equity Free to share, print, make copies and changes. Get yours at www.boundless.com

5. Cash Dividend Alternatives Reporting of Stockholders' Equity(continued) Reporting and Analyzing Equity Additional Topics in Stockholders' Equity ] Reporting of Stockholders' Equity Free to share, print, make copies and changes. Get yours at www.boundless.com

6. Reporting of Stockholders' Equity > Understanding the Corporation Understanding the Corporation • Characteristics of a Corporation • Formation of the Corporation Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/accounting/textbooks/boundless-accounting-textbook/reporting-of-stockholders-equity-12/understanding-the-corporation-76/

7. Reporting of Stockholders' Equity > Stock Transactions Stock Transactions • Issuing Stock • Employee Stock Compensation • Repurchasing Stock • Treasury Stock Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/accounting/textbooks/boundless-accounting-textbook/reporting-of-stockholders-equity-12/stock-transactions-77/

8. Reporting of Stockholders' Equity > Rules and Rights of Common and Preferred Stock Rules and Rights of Common and Preferred Stock • Claim to Income • Voting Right • Provisions of Preferred Stock • Purchasing New Shares • Preferred Stock Rules and Rights • Comparing Common Stock, Preferred Stock, and Debt Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/accounting/textbooks/boundless-accounting-textbook/reporting-of-stockholders-equity-12/rules-and-rights-of-common-and-preferred-stock-78/

9. Reporting of Stockholders' Equity > Additional Detail on Preferred Stock Additional Detail on Preferred Stock • Dividend Preference • Liquidation Preference • Accounting for Preferred Stock Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/accounting/textbooks/boundless-accounting-textbook/reporting-of-stockholders-equity-12/additional-detail-on-preferred-stock-79/

10. Reporting of Stockholders' Equity > Dividend Policy Dividend Policy • Impact of Dividend Policy on Clientele • Stock Dividends vs. Cash Dividends • Investor Preferences • Accounting Considerations • Signaling Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/accounting/textbooks/boundless-accounting-textbook/reporting-of-stockholders-equity-12/dividend-policy-80/

11. Reporting of Stockholders' Equity > Cash Dividend Alternatives Cash Dividend Alternatives • Dividend Reinvestments • Stock Dividends • Drawbacks of Repurchasing Shares • Reverse Splits • Benefits of Repurchasing Shares • Stock Splits • Repurchasing Shares Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/accounting/textbooks/boundless-accounting-textbook/reporting-of-stockholders-equity-12/cash-dividend-alternatives-81/

12. Reporting of Stockholders' Equity > Reporting and Analyzing Equity Reporting and Analyzing Equity • Reporting Stockholders' Equity • Earnings per Share • Dividend Yield Ratio Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/accounting/textbooks/boundless-accounting-textbook/reporting-of-stockholders-equity-12/reporting-and-analyzing-equity-82/

13. Reporting of Stockholders' Equity > Additional Topics in Stockholders' Equity Additional Topics in Stockholders' Equity • Other Comprehensive Income • Convertible Stock • Stock Warrants • Calculating Diluted Earnings per Share Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/accounting/textbooks/boundless-accounting-textbook/reporting-of-stockholders-equity-12/additional-topics-in-stockholders-equity-83/

14. Appendix Free to share, print, make copies and changes. Get yours at www.boundless.com

15. Reporting of Stockholders' Equity Key terms • authorized stockshares created by the company • bondA bond is an instrument of indebtness of the bond issuers toward the bond holders. • Callable sharesShares which can be bought back by the issuer at a predetermined price. • capitalMoney and wealth. The means to acquire goods and services, especially in a non-barter system. • capital gainsProfit that results from a disposition of a capital asset, such as stock, bond, or real estate due to arbitrage. • cash dividenda payment by the company to shareholders paid out in currency, usually via electronic funds transfer or a printed paper check • cash dividendsCash dividends are those paid out in currency, usually via electronic funds transfer or by paper check. • charterA document issued by some authority, creating a public or private institution, and defining its purposes and privileges. • clienteleThe body or class of people who frequent an establishment or purchase a service, especially when considered as forming a more-or-less homogeneous group of clients in terms of values or habits. • clientele effectThe theory that changes in a firm's dividend policy will cause loss of some clientele who will choose to sell their stock, and attract new clientele who will buy stock based on dividend preferences. • Common stockShares of an ownership interest in the equity of a corporation or other entity with limited liability entitled to dividends, with financial rights junior to preferred stock and liabilities. • Common stockCommon stock is a form of equity and type of security. Common stock shareholders are at the bottom of the line when it comes to dividends and receiving compensation in the case of bankruptcy. Free to share, print, make copies and changes. Get yours at www.boundless.com

16. Reporting of Stockholders' Equity • Common stockCommon stock is a form of corporate equity ownership, a type of security. • Common stockShares of an ownership interest in the equity of a corporation or other entity with limited liability entitled to dividends, with financial rights junior to preferred stock and liabilities. • Common stockCommon stock is a form of equity and type of security. Common stock shareholders are at the bottom of the line when it comes to dividends and receiving compensation in the case of bankruptcy. • contributed capitalRefers to capital contributed to a corporation by investors through purchase of stock from the corporation (primary market) (not through purchase of stock in the open market from other stockholders (secondary market)). It includes share capital (i.e. capital stock) as well as additional paid-in capital. • Convertible preferred stockConvertible preferred stock can be exchanged for a predetermined number of company common stock shares. • corporationA group of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members. • creditorA person to whom a debt is owed. • creditorA person to whom a debt is owed. • cumulative dividenda payments by the company to shareholders that accumulate if a previous payment was missed • Cumulative DividendsCondition where owners of certain shares will receive accumulated dividends in the case a company cannot pay out dividends at the stated rate at the stated time. • declaration datethe day the Board of Directors announces its intention to pay a dividend • dilutiveDescribing something that dilutes or causes dilution (reduces value). Free to share, print, make copies and changes. Get yours at www.boundless.com

17. Reporting of Stockholders' Equity • discontinued operationsA discontinued operation is a component of an enterprise that has either been disposed of, or is classified as "held for sale", and also represents a separate major line of business or geographical area of operations; and is part of a single, co-ordinated plan to dispose of this separate major line of business or geographical area of operations; or is a subsidiary acquired exclusively with a view to resale. • dividendA pro rata payment of money by a company to its shareholders, usually made periodically (eg, quarterly or annually). • dividendA pro rata payment of money by a company to its shareholders, usually made periodically (eg, quarterly or annually). • dividendA pro rata payment of money by a company to its shareholders, usually made periodically (e.g., quarterly or annually). • dividend clienteleSets of investors who are attracted to certain types of dividend policy. • dividend decisionA decision made by the directors of a company. It relates to the amount and timing of any cash payments made to the company's stockholders. The decision is an important one for the firm as it may influence its capital structure and stock price. In addition, the decision may determine the amount of taxation that stockholders pay. • dividend in arrearsan omitted dividend on cumulative preferred stock • dividend policyA firm's decisions on how to distribute (or not distribute) their earnings to their shareholders. • Earnings Per ShareThe amount of earnings per each outstanding share of a company's stock. • Earnings Per ShareEPS. (Net Income - Dividends on Preferred Stock) / Outstanding Shares • Earnings Per ShareThe amount of earnings per each outstanding share of a company's stock. • exercise priceThe fixed price at which the owner of an option can purchase (in the case of a call) or sell (in the case of a put) the underlying security or commodity. Free to share, print, make copies and changes. Get yours at www.boundless.com

18. Reporting of Stockholders' Equity • exercise priceThe fixed price at which the owner of an option can purchase (in the case of a call) or sell (in the case of a put) the underlying security or commodity. • hedgeContract or arrangement reducing one's exposure to risk (for example, the risk of price movements or interest rate movements). • hostile takeoverAn attempted takeover of a company that is strongly resisted by the target company's management. • IFRSInternational Financial Reporting Standards; designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. • information asymmetryIn economics and contract theory, information asymmetry deals with the study of decisions in transactions where one party has more or better information than the other. • insiderA person who has special knowledge about the inner workings of a group, organization, or institution. • insolvencyWhen debts exceed existing assets (i.e. the ability to pay them). • limited liabilityThe liability of an owner or a partner of a company for no more capital than they have invested. • liquidationThe selling of the assets of a business as part of the process of dissolving it. • liquidationliquidation is the process by which a company (or part of a company) is brought to an end, and the assets and property of the company redistributed • liquidationThe selling of the assets of a business as part of the process of dissolving it. • liquidationThe selling of the assets of a business as part of the process of dissolving it. Free to share, print, make copies and changes. Get yours at www.boundless.com

19. Reporting of Stockholders' Equity • market capitalizationThe total market value of the equity in a publicly traded entity. • outstanding sharesShares outstanding are all the shares of a corporation that have been authorized, issued and purchased by investors and are held by them. • outstanding stockall the stock of a corporation or financial asset that have been authorized, issued and purchased by investors and are held by them • paid-in capitalCapital contributed to a corporation by investors through purchase of stock from the corporation. • paid-in capitalrefers to capital contributed to a corporation by investors through purchase of stock from the corporation (primary market) (not through purchase of stock in the open market from other stockholders (secondary market) • par valueThe amount or value listed on a bill, note, stamp, etc.; the stated value or amount. • PreemptionThe right of a shareholder to purchase newly issued shares of a business entity before they are available to the general public so as to protect individual ownership from dilution. • preemptive rightThe right of shareholders to maintain a constant percentage of a company's shares by receiving a proportionate fraction of any new shares issued, thus preempting any dilution • preferred sharePreferred stock (also called "preferred shares," "preference shares," or simply "preferreds") is an equity security with properties of both an equity and a debt instrument, and is generally considered a hybrid instrument. Preferreds are senior (i.e., higher ranking) to common stock but subordinate to bonds in terms of claim (or rights to their share of the assets of the company). Preferred stock usually carries no voting rights, but may carry a dividend and may have priority over common stock in the payment of dividends and upon liquidation. Terms of the preferred stock are stated in a "Certificate of Designation. " • Preferred StockStock with a dividend, usually fixed, that is paid out of profits before any dividend can be paid on common stock, and that has priority to common stock in liquidation. • Preferred StockStock with a dividend, usually fixed, that is paid out of profits before any dividend can be paid on common stock, and that has priority to common stock in liquidation. • Preferred StockStock with a dividend, usually fixed, that is paid out of profits before any dividend can be paid on common stock, and that has priority to common stock in liquidation. Free to share, print, make copies and changes. Get yours at www.boundless.com

20. Reporting of Stockholders' Equity • Preferred StockPreferred stock is an equity security that has the properties of both an equity and debt instrument and is higher ranking than common stock. • Preferred StockPreferred stock is an equity security that has the properties of both an equity and debt instrument and is higher ranking than common stock. • Preferred StockPreferred stock is an equity security that has the properties of both an equity and debt instrument and is higher ranking than common stock. • Preferred StockPreferred stock is an equity security that has the properties of both an equity and debt instrument and is higher ranking than common stock. • price earnings ratioThe market price of that share divided by the annual earnings per share. • privately held corporationa business entity owned by a small number of people, and not having shares of ownership sold via a stock exchange or other public market • publicly held corporationa business entity owned by shareholders who may buy or sell their shares to anyone through a stock exchange • reinvestTo invest cash again, instead of holding it as cash. • remunerationA payment for work done; wages, salary, emolument. • RepurchaseTo buy back a company's own shares. The issuing company pays public shareholder for their shares. • retained earningsThe portion of net income that is retained by the corporation rather than distributed to its owners as dividends. • share repurchaseStock repurchase (or share buyback) is the reacquisition by a company of its own stock. In some countries, including the U.S. and the UK, a corporation can repurchase its own stock by distributing cash to existing shareholders in exchange for a fraction of the company's outstanding equity; that is, cash is exchanged for a reduction in the number of shares outstanding. The company either retires the repurchased shares or keeps them as treasury stock, available for re-issuance. Free to share, print, make copies and changes. Get yours at www.boundless.com

21. Reporting of Stockholders' Equity • signallingAction taken by one agent to indirectly convey information to another agent. • stock dividenda payment to a shareholder paid out in the form of additional stock shares of the issuing corporation, or another corporation (such as its subsidiary corporation) • stock dividendsStock or scrip dividends are those paid out in the form of additional stock shares of either the issuing corporation or another corporation. • Stock ExchangeA form of exchange that provides services for stock brokers and traders to trade stocks, bonds and other securities. • stock splitTo issue a higher number of new shares to replace old shares. This effectively increases the number of shares outstanding without changing the market capitalization of the company. • treasury stockA treasury or "reacquired" stock is one which is bought back by the issuing company, reducing the amount of outstanding stock on the open market ("open market" including insiders' holdings). • vesting periodA period of time an investor or other person holding a right to something must wait until they are capable of fully exercising their rights and until those rights may not be taken away. • Voting rightsRights which are generally associated with common stock shareholders in regards to business entity matters ( such as electing the board of directors or establishing corporate policy) • weighted averageAn arithmetic mean of values biased according to agreed weightings. • yieldThe current return as a percentage of the price of a stock or bond. Free to share, print, make copies and changes. Get yours at www.boundless.com

22. Reporting of Stockholders' Equity Income from Dividends When choosing between cash or stock dividends, the trade-off is between liquidity in the short-term or income from capital gains in the long-term. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Wikimedia."CC BY-SAhttp://wikimedia.orgView on Boundless.com

23. Reporting of Stockholders' Equity Earnings Per Share Continuing operations formula Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Earning per share."GNU FDLhttp://en.wikipedia.org/wiki/Earning_per_shareView on Boundless.com

24. Reporting of Stockholders' Equity Historical dividend information for Franklin Automobile Company Dividends are one of the privileges of stock ownership, and preferred shares get more rights to them than common shares do. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Wikimedia."CC BY-SAhttp://wikimedia.orgView on Boundless.com

25. Reporting of Stockholders' Equity Shareholder Meeting This scene from "The Office" humorously illustrates a shareholder meeting, where the shareholder can exercise their right to vote on company issues or question company directors. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Shareholder Meeting."GNU FDLhttp://en.wikipedia.org/wiki/Shareholder_MeetingView on Boundless.com

26. Reporting of Stockholders' Equity Sears Roebuck & Co. Bond Certificate Public companies can offer company bonds for sale with stock warrants attached. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Sears Aktie."CC BY-SAhttp://commons.wikimedia.org/wiki/File:Sears_Aktie.jpgView on Boundless.com

27. Reporting of Stockholders' Equity Earnings Per Share Basic formula Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Earning per share."GNU FDLhttp://en.wikipedia.org/wiki/Earning_per_shareView on Boundless.com

28. Reporting of Stockholders' Equity Stock Market Different kinds of investors are active in stock market. Free to share, print, make copies and changes. Get yours at www.boundless.com Flickr."All sizes | stock market | Flickr - Photo Sharing!."CC BYhttp://www.flickr.com/photos/68751915@N05/6870880911/sizes/m/in/photostream/View on Boundless.com

29. Reporting of Stockholders' Equity Berkshire Hathaway Berkshire Hathaway has famously never had a stock split, and has never paid a dividend. As a result its Class A shares traded at $121,775.00 as of May 2, 2012, making them the highest-priced shares on the New York Stock Exchange. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."File:Berkshire Hathaway.svg - Wikipedia, the free encyclopedia."CC BY-SAhttp://en.wikipedia.org/w/index.php?title=File:Berkshire_Hathaway.svg&page=1View on Boundless.com

30. Reporting of Stockholders' Equity Balance Sheet Shareholders' equity in a balance sheet. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Balance sheet."GNU FDLhttp://en.wikipedia.org/wiki/Balance_sheetView on Boundless.com

31. Reporting of Stockholders' Equity Gerber Products Common Stock Certificate Companies that issue common stock and reacquire it in the future, reclassify it as treasury stock. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Gerber Products Company Specimen Stock Certificate 1971."CC BY-SAhttp://commons.wikimedia.org/wiki/File:Gerber_Products_Company_Specimen_Stock_Certificate_1971.jpgView on Boundless.com

32. Reporting of Stockholders' Equity Exchanges New shares can be traded on exchanges such as the Nasdaq, but will usually be offered to current shareholders before being put on sale to the general public. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Nasdaq."GNU FDLhttp://en.wikipedia.org/wiki/NasdaqView on Boundless.com

33. Reporting of Stockholders' Equity 1903 stock certificate of the Baltimore and Ohio Railroad Ownership of shares is documented by the issuance of a stock certificate and represents the shareholder's rights with regards to the business entity. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."B&O RR common stock."Public domainhttp://en.wikipedia.org/wiki/File:B&O_RR_common_stock.jpgView on Boundless.com

34. Reporting of Stockholders' Equity Charter of Harvard College In 1636, New England ministers founded Harvard College, America's first institution of higher education. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."HarvardCollegeCharter."Public domainhttp://en.wikipedia.org/wiki/File:HarvardCollegeCharter.jpegView on Boundless.com

35. Reporting of Stockholders' Equity U.S. Corporate Profits This chart illustrates the overall corporate profit over time in the U.S. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."US_Corporate_Profits_1947-2011.jpg."CC BY-SA 3.0https://upload.wikimedia.org/wikipedia/commons/3/34/US_Corporate_Profits_1947-2011.jpgView on Boundless.com

36. Reporting of Stockholders' Equity Corporate Tax Rate of Time (U.S.) This chart illustrates the effective corporate tax rate in the U.S. over time. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."US_Effective_Corporate_Tax_Rate_1947-2011_v2.jpg."CC BY-SA 3.0https://upload.wikimedia.org/wikipedia/commons/3/3e/US_Effective_Corporate_Tax_Rate_1947-2011_v2.jpgView on Boundless.com

37. Reporting of Stockholders' Equity Allied Paper Corp. Common Stock Certificate A public company's preferred stock is designated as convertible if it can be exchanged for common stock. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Allied Paper Corporation Stock Certificate 1964."Public domainhttp://commons.wikimedia.org/wiki/File:Allied_Paper_Corporation_Stock_Certificate_1964.jpgView on Boundless.com

38. Reporting of Stockholders' Equity Stakeholders that use financial statements. Other comprehensive income can be reported in its own statement of comprehensive income or in a separate section within the income statement. Free to share, print, make copies and changes. Get yours at www.boundless.com Flickr."y2cary3n6mng-76r9m3-stakeholders-in-financial-stat | Flickr - Photo Sharing!."CC BY-SAhttp://www.flickr.com/photos/sampjb/7690680896/View on Boundless.com

39. Reporting of Stockholders' Equity Plane Liquidation Planes are an example of liquidated items when companies "go under. " They are generally auctioned off to the highest bidder. Free to share, print, make copies and changes. Get yours at www.boundless.com Fotopedia.CC BY-SAhttp://www.fotopedia.com/items/flickr-3487605452View on Boundless.com

40. Reporting of Stockholders' Equity A bond from the Dutch East India Company A bond is a financial security that represents a promise by a company or government to repay a certain amount, with interest, to the bondholder. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Vereinigte Ostindische Compagnie bond."CC BY-SAhttp://en.wikipedia.org/wiki/File:Vereinigte_Ostindische_Compagnie_bond.jpgView on Boundless.com

41. Reporting of Stockholders' Equity VOC stock Preferred stock is a security ( a little more modern that this stock from the VOC or Dutch East India Company) that carries certain rights which designate it from common stock or debt. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Stock."GNU FDLhttp://en.wikipedia.org/wiki/StockView on Boundless.com

42. Reporting of Stockholders' Equity Clientele Type Example Retirees are more likely to prefer high dividend payouts over capital gains since this provides them with cash income. Therefore, if a company discontinued paying dividends, the clientele effect may cause retiree shareholders to sell the stock in favor of other income generating investments. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Wikimedia."CC BY-SAhttp://wikimedia.orgView on Boundless.com

43. Reporting of Stockholders' Equity 1903 stock certificate of the Baltimore and Ohio Railroad Ownership of shares is documented by the issuance of a stock certificate and represents the shareholder's rights with regards to the business entity. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."B&O RR common stock."Public domainhttp://en.wikipedia.org/wiki/File:B&O_RR_common_stock.jpgView on Boundless.com

44. Reporting of Stockholders' Equity Earnings Per Share Net income formula Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Earning per share."GNU FDLhttp://en.wikipedia.org/wiki/Earning_per_shareView on Boundless.com

45. Reporting of Stockholders' Equity SEC The Securities and Exchange Commission is the department that sets the different regulations regarding stock trading and splitting. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."U.S. Securities and Exchange Commission."GNU FDLhttp://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_CommissionView on Boundless.com

46. Reporting of Stockholders' Equity Marc Benioff CEOs, like Marc Benioff of Salesforce.com, may have to meet certain financial targets in order to earn his or her bonus. If one of these targets is EPS, they may have an incentive to try to increase EPS artificially. Free to share, print, make copies and changes. Get yours at www.boundless.com Fotopedia.CC BYhttp://www.fotopedia.com/items/flickr-3239017028View on Boundless.com

47. Reporting of Stockholders' Equity General Foods Common Stock Certificate Publicly traded companies may offer stock options to their employees as part of their compensation. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."General Foods 1937 Specimen Stock Certificate."CC BY-SAhttp://commons.wikimedia.org/wiki/File:General_Foods_1937_Specimen_Stock_Certificate.jpgView on Boundless.com

48. Reporting of Stockholders' Equity Earnings per share shows the amount of income applicable to each share of common stock. Diluted earnings per share includes shares of common stock from dilutive securities, such as convertible debt or stock options, in its calculation. Free to share, print, make copies and changes. Get yours at www.boundless.com Flickr."Graph With Stacks Of Coins | Flickr - Photo Sharing!."CC BY-SAhttp://www.flickr.com/photos/teegardin/6093690339/View on Boundless.com

49. Reporting of Stockholders' Equity Current dividend yield Current dividend yield = Most recent Full-Year Dividend / Current Share Price Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Dividend yield."GNU FDLhttp://en.wikipedia.org/wiki/Dividend_yieldView on Boundless.com

50. Reporting of Stockholders' Equity Wall Street circa 1910 Public companies sometimes repurchase their own stock. The reacquired stock is referred to as treasury stock. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Broad Street north to Stock Exchange, U.S.Sub-treasury and Wall Street, N.Y, from Robert N. Dennis collection of stereoscopic views."Public domainhttp://commons.wikimedia.org/wiki/File:Broad_Street_north_to_Stock_Exchange,_U.S._Sub-treasury_and_Wall_Street,_N.Y,_from_Robert_N._Dennis_collection_of_stereoscopic_views.jpgView on Boundless.com