110. Match each of the following terms with the appropriate definitions.
1. The value assigned to a share of stock by the corporate charter when the stock is authorized
Call price
2. Stockholders equity applicable to common shares divided by the number of common shares outstanding
Financial leverage
3. No-par stock to which the directors assign a stated value per share; this amount becomes the minimum legal capital
Market value per share
4. The earning of a higher return on common stock by paying dividends on preferred stock or interest on debt at a rate that is less than the rate of return earned with the assets from issuing preferred stock or debt
Premium on stock
5. The difference between the par value of stock and its issue price when it is issued at a price above par value
Stated value stock
6. The amount that must be paid to call and retire a preferred share
Cumulative preferred stock
7. The price at which stock is bought or sold in the market
Stockholders' equity
8. The equity of a corporation
Par value
9. A preferred stock that has the right to be paid both the current and all prior periods' unpaid dividend before any dividend is paid to common stockholders
Preferred stock
10. Stock that gives its owners a priority status over common stockholders in one or more ways, such as the payment of dividends or the distribution of assets
Book value per common share
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