SHAREHOLDERS’ EQUITY QUIZ QUESTIONS 1. What is a share? (1 mark) Answer: A share is an unit of ownership that represents an equal proportion of a company's capital. It entitles its holder (the shareholder) to an equal claim on the company's profits and an equal obligation for the company's debts and losses. 2. Identify two advantages of a private placement of shares as compared with a public issue. (1 mark) Answer: 1. The investor can get positive allotment. 2. The investor can get high number of shares. 3. The share value can be lower many a times. 4. The company doesn't need to provide as much disclosure to investors. 3. The shareholders of Quinninup Ltd hold 25 000 A class ordinary shares, fully paid at $4.50 each. On 17 April …show more content…
Shannon Ltd has the following equity at 30 June 2013: $ 86 000 ordinary shares @ $2.00, fully paid 172 000 57 000 ordinary shares @ $3.00, paid to $2.40 136 800 Calls in advance (7 000 shares) 4 200 Retained earnings 120 000 433 000 On 24 November 2013, the directors made the final call on the partly paid shares with monies due and payable on 31 December 2013. All monies were duly received. Required Prepare the journal entries to record the call, show all workings. (3 marks) Answer: Date Accounting Title Debit ($) Credit($) 24 Nov 2013 Call Share capital 34200 34200 (call of $0.6 per share on 57000 ordinary share) 24 Nov 2013 Calls in advance Call 4200 4200 (transfer calls in advance against call debt) 31 Dec 2013 Cash Call 30000 30000 (receipt of call money) 10. Under what circumstances may a company retain excess application monies? (2 marks) Answer: Excess monies may be retained if (i) The constitution allows (ii) There is a future call outstanding. Excess is transferred to Calls in advance account and treated as part of share capital. If
* b. Further allocation of amounts allocated to repurchased shares to various components of stockholder equity upon formal or constructive retirement.
This four-credit course is for students who major in finance. By the end of this course,
Common Stock issued by Plyer in 2015 = $ 75,000 - $ 50,000 = $
price is $25 per share. The most recent dividend was $1 and the growth rate is 5%.
There are a couple of concerns with Competition Bikes Inc., ProForma for year 9. The first concern is the amount of money that is allocated to research and development. For the previous three years, they have been all over the board with their budgets. The sixth year was $71,460, the seventh year was $98,280, and the eight year was $82,284. This is concerning that the budget has fluctuated so much. In the ninth year they have allocated $85,861. This budget line item should be analyzed so there is not so much variance in the budget between year to year.
Company issued equity instruments to Bank B with a fair value of $30 million. In
Note: In review of the Board of Director Minutes (GA-3.2), it was noted that the other receivables was an advance to Mr. Lancaster’s secretary. This was reclassed to an employee receivable (AJE# 3). It was also noted that the note carried a 1% interest rate. For the six month period this would be $5,000. Due to the nature of the note and the concern of whether Mr. Lancaster’s secretary will ultimately pay this back, no accrual is made here. It will be noted in the footnotes, however.
11. Managers of POM Corp. wish to maximize the long term share price of the firm. Investors are aware of this. In this situation, if the managers of POM announce an equity issue, investors will conclude that the share price is __A1__. Therefore they will __A2__ the shares at the offered price. Anticipating this condition, the managers would __A3__.
Debit Retained Earnings $96,000; credit Common Stock Dividend Distributable $80,000; credit Paid-In Capital in Excess of Par Value, Common Stock $16,000.
For an individual who pays personal income taxes at a rate of 30 percent, which of the following statements is most correct?
There is no doubt that the contribution of each of the group members is equal.
2. How does private-equity investing compare with public-market investing? What are the similarities and differences between the two?
Keeping in view the above figures, it turned out that the company’s remaining deferred tax assets amount to $ 5.2 billion and since it is a substantial amount the company’s management may however believe that it would be realized based on forecasted taxable income. However, as per FAS # 109, paragraph 17, issued February 1992, whereby it
After the company has been approved the new shareholders have to elect a board of directors whom are going to run the company on their behalf. The directors are been elected to do the day to day running of a company, and because of their expertise and skills. After the broad of directors are elected of the shareholders they take over they responsible of the running of the company. Each share equals one vote, but in most cases small numbers of shares have little to say as in most cases large investors who hold the majority of shares have the power and saying in the company. The number of shares in one company, which equals 100% differ from company to company, and the price per share differ as well. There are two different types of companies: private limited companies and public limited companies. Shares cannot be traded without the approval of the board of directors in a private limited company. The shares are also only sold to friends or family member with a prior agreement and not to the general public. Normally a private limited company has the letters “Ltd” after its name, On the other hand a public limited company is selling their stocks on the Stock Market to the general public. Public limited companies sometimes carry the letters “PLC” after its name. The value of a company is all shares added together and have to equal 100% of the shares. This is how the value of a company constantly is change, as a result
This is the twelfth H-share issue on the HKEX. Total 1,080 million “H” shares would be offered and the total market capitalization is HK$1,575 million.