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- Share Price can be determined by the cash flows and risk. Assume other things held constant, increased in risk will result in a. a lower share prices b. a higher share prices c. unchanged share price d. an undetermined share pricesGW Underwriters retains the difference between its buying price and its offering price on new securities. What is this amount called? Multiple Choice Markup Commission Rights price Spread OfferWhich of the following case where the losses are to be shared by the partners in their profit sharing ratio? • a. Dissolution of Firm b. None of the options are correct c Profit and Loss d. Revaluation
- If the issuing company has only one class of share capital, a transfer from retained earnings to contributed capital equal to the market value of the shares issued is ordinarily a characteristic of: A. A bonus issue but not a share split B. Neither a bonus issue nor a share split C. Either a bonus issue or a share split D. A share split but not a bonus issueBUFFET'S REASON FOR PREFERRING SHARE REPURCHASES VALID? IS A "HOMEMADE DIVIDEND" A VIABLE ALTERNATIVE TO CASH DIVIDENDS FOR THE INVESTOR?Which of the following statement is true? a. In brokered markets, buyers and sellers confront each other directly and bargain over price. b. Primary market is the market for trading outstanding securities. c. Preference shareholders have a higher priority claim on company’s assets than ordinary shareholders in the event of insolvency. d. Ordinary shareholders receive fixed dividend payments.
- In a share-based payment with cash and share alternatives, the net effect to the shareholders’ equity if the employee chooses the cash alternative is A.the balance of the accrued salaries payable B.the total subscription price C.zero D.the balance of the share options outstandingDescribe some of the positives and negatives from the point of view of both the acquirer and the target in a merger. What is the usual impact on the stock prices of each?In a share-based payment with cash and share alternatives, the net effect to the shareholders’ equity if the employee chooses the share alternative is A.the total subscription price B.the balance of the share options outstanding C.the balance of the accrued salaries payable D.zero
- What is the balance of the ordinary share premium after considering the above transactions? 2. What is the balance of the preference share premium after considering the transactions of Forgiveness Inc.?In a share-based payment with cash and share alternatives, the net effect to the shareholders’ equity if the employee chooses the cash alternative is the balance of the accrued salaries payable the balance of the share options outstanding zero the total subscription priceo. Compare and contrast different methods of capital reconstruction, such as share buybacks, debt - for - equity swaps, and the cancellation of share capital. When might a company choose one method over another, and what are the financial implications of each?