When an investment is made in another corporation's common stock, what is the effect on total stockholders' equity?

A) Decrease.

B) Increase.

C) No effect.

D) Cannot determine from the given information.

Answer: C

Which of the following financing alternatives has the highest preference for dividends/interest payments?

A) Common Stock.

B) Preferred Stock.

C) Bonds.

D) The other answer choices have equal preference.

Answer: C

When treasury stock is acquired, what is the effect on total stockholders' equity?

A) Decrease.

B) Increase.

C) No effect.

D) Cannot determine from the given information.

Answer: A