Chapter 13, Problem 3BTN

To determine

Concept Introduction:

Shares: The amount of capital divided into small portions which are sold to the investors is called shares.

Requirement 1:

How many classes of stock McDonald has issued?

To determine

Concept Introduction:

Par Value: The original value of shares prescribed on the share certificate is called a par value of the share.

Authorized Shares: The number of shares authorized by the Securities and Exchange Commission to a company is called Authorized shares.

Issued Shares: The number of shares sold by a company from the authorized shares is termed as issued shares.

Requirement 2:

Identify the par values, number of authorized shares, and number of issued shares of the classes of stock.

To determine

Concept Introduction:

Treasury Stock: The stocks which are bought back by the Company from its shareholders are called treasury stock. The followings are the reasons for buying back of a company's own shares:

• Avoiding takeover of the company.
• To give compensation to their employees in terms of shares.
• To show strong status for their shares in the market.

Requirement 3:

What is the total amount of cash paid in 2016 to purchase treasury stock?

To determine

Concept Introduction:

Cash Dividends: The amount of cash paid to the shareholders of a company as reward for their investments is termed as cash dividends.

Requirement 4:

What amount did McDonald's pay out in common stock cash dividends for 2016?