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The best valuation method(s) for a publicly-traded
a. Relative valuation and contingent claim valuation
b.Intrinsic valuation, relative valuation and contingent claim valuation
c.Intrinsic valuation only
d.Intrinsic valuation and relative valuation
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- The difference between authorized share capital and issued share capital is known as __________. Select one: a. current share capital b. preference share capital c. ordinary share capital d. unissued share capitalRedeemable preference shares will be shown under: a. Equity in the statement of financial position b. Non current liability in the statement of financial position c. Current asset in the statement of financial position d. Current liability in the statement of financial positionAnswer the question assuming that the preference share capital of Love Company are non-cumulative.
- Which of the following statements is true in relation to the call price of preference shares? The call price is used in computing book value per share. In the absence of call price, the liquidation value is disregarded and the par or stated value is instead used. The call price is the amount paid to preference shareholders upon redemption of preference shares during the lifetime of the entity. All of these statements are true.Differentiate an ordinary share capital from a preference share capital.Which feature of preference shares would most likely be opposed byordinary shareholders? A. callableB. convertibleC. participatingD. redeemable
- Preference share that is given a right to share with the ordinary share in dividends in excess of a stated dividend rate is said to be * a. cumulative b. participating c. non cumulative d. non participatingWhat is a callable preference share, redeemable preference share, and convertible preferenceDoes the component cost of preferred stock include or excludeflotation costs? Explain
- Answer the following questions correctly. 1.Explain the accounting for the issuance of: a. Par value share b. No-par value share 2. Explain the accounting for share capital issued for noncash considerationsExplain how convertible securities are determined to bepotentially dilutive common shares and how thoseconvertible securities that are not considered to be potentiallydilutive common shares enter into the determinationof earnings per share data.Which of the following costs of a business combination can be deducted from the value assigned to paid-in capital in excess of par? a. Direct and indirect acquisition costs. b. Direct acquisition costs. c. Direct acquisition costs and stock issue costs if stock is issued as consideration. d. Stock issue costs if stock is issued as consideration.