Question -

1. How do the various functional departments of an organization use financial planning (i.e. marketing, operations, sales, executive management, finance, etc)?

2. In the absence of restrictive provisions, what are the basic rights of stockholder's of a corporation? How are these rights altered when both common and preferred stock are issued by the same corporation?

3. Why is the distinction between paid-in capital and retained earnings important?

4. Explain how underwriting costs and accounting and legal fees associated with the issuance of capital stock should be recorded.

5. What factors influence the dividend policy of a company? Provide and summarize in your own words a real world example discussing a firm's dividend policy that cites at least one of these factors.