Accounting Questions, accounting homework help

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Needed the questions answered individually.

  1. What are some similarities and differences between common stock and preferred stock? As a shareholder, would you want preferred or common stock? Explain why. As a corporation, would you rather issue preferred or common stock? Explain why.
  2. Why do companies offer stock options? Should stock option compensation be included as an expense when calculating an organization’s net income? Explain why or why not. If so, how should the amount of expense be calculated?
  3. What is the purpose of a stock split? What are some benefits of a stock split for a company? What are some benefits for an investor? What is the effect to the market value of the stock?
  4. What are dividends?
  5. What is the difference between stated value vs Par value?

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