Determine whether potential common shares are antidilutive.

Q: In what situations should managers consider the use of stockdividends?

A: Stock dividend: It could be a dividend installment made in stocks instead of as cash to…

Q: How are common shares different from preferred shares? Cite advantages and disadvantages.

A: Share can be defined as unit of ownership in a company. Investors invests in a company by purchasing…

Q: What is an IPO?

A: Initial public offering refers to the offering which is done first time by any private corporation…

Q: how signaling content affects dividend policy definition

A: According to signalling theory any positive signal indicates positive indicators and will increase…

Q: When can shares be Forfeited?

A: Shares are issued by the company to the public for ownership in the company The shares have an…

Q: What are cumulative and non- cumulative preference share ? Explain

A: Preferred stocks have a senior claim on distributions like dividends and company's assets than…

Q: What is oversubscribed (IPO)?

A: Introduction: Initial public offering (IPO) happens when a company is first selling shares to the…

Q: What are preference shares

A: In order to run businesses, capital is needed. Capital can be in the form of cash or in the form of…

Q: What are the distinguishing classes of shares?

A: Shares: The capital of the company is divided into units of small denomination. It is called Shares.…

Q: how signaling content affects dividend policy

A: Dividend policy is a policy a corporation uses to organize its dividend pay-out to its shareholders…

Q: Define dividend irrelevance theory

A: Dividend irrelevance theory: The dividend irrelevance theory is defined as the policy of dividend…

Q: What are the two parts of the stock?

A: Equity capital is the funds invested by the owners of the company. The equity holders of the owners…

Q: Explain the following statement: “Preferred stock is a hybridsecurity.”

A: Single financial security could be hybrid security that comes with 2 or more separate financial…

Q: over subscription of shares will be dealt with

A: Over subscription of shares occurs when more applications are received than number of shares…

Q: (a) Briefly explain why information asymmetry can widen the effective bid ask spread of a stock.

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: 1. Explain how to account for share investment?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Define Share Repurchases.

A: Shares: A Share is a term which is used to define the ownership certificates of the company. A share…

Q: Write down what are the disadvantages of shareholders equity?

A: Equity is one of the common sources to raise finance. Whenever a company requires finance it can…

Q: what is IPO underpricing? How do asymmetric information model explain this phenomena?Briefly explain

A: When an IPO( initial public offering )  is set at a price lower than its real market value. So, when…

Q: What is a callable preference share, redeemable preference share, and convertible preference

A: Callable preference shares are the preference shares that would be redeemed at a predetermined value…

Q: What is Restricted Stock Units?

A: For motivating employees, employer offers certain units of stock to their employees. On issuing…

Q: When several types of potential common shares exist, the one that enters the computation of diluted…

A: Diluted EPS is an estimation used to measure the nature of an organization's earning per share (EPS)…

Q: Explain the following terms mean to include the major features, rights, and restrictions of eăch. a)…

A: “Since you have asked multiple questions, we will solve the first question for you.  If you want a…

Q: Preference Share Capital

A: Capital is the funds invested in the business to earn revenue.

Q: When does reverse stock split occurs?

A: Stock split means reducing the face value of single share. For example, A share of $100 will be…

Q: what are the dividend constraints?

A: In the world of finance dividend constraints are a reality that companies and shareholders have to…

Q: Explain Typical Rights of Preferred Shares.

A:

Q: Differentiate the following investments by determining its advantage or disadvantage Preferred…

A: Preferred stock  Preferred stock is preference shares issued by the company which has the…

Q: Explain Resale of Shares.

A: Introduction: Resale of shares is nothing but selling the shares that are previously bought by…

Q: Explain fractional shares with examples.

A: Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing…

Q: What are different types of preference shares?

A: Preference Shares:   It is a form of ownership over the company which entitles the shareholder a…

Q: Equity share are known as:

A: Equity shares are the shares which provides its holders the ownership rights and right to vote…

Q: What is restricted stock?

A: Definition: Common stock: Common stock is the instrument used by the company for raising funds from…

Q: The preference share can be redemed

A: The preference share can be redeemed : Redeemable preference shares are those shares where the…

Q: a) Should preference shares be disclosed as 'equity' or 'debt'? Response

A: Preference Shares are the sources of capital for a corporation which are paid fixed rate of…

Q: alculate the weighted average number of shares for the following  see attachmen

A: Weighted no. of shares is average no. of shares outstanding during the year after incorporating the…

Q: basket price allocation

A: Basket price allocation is a method of allocation of consideration when two or more items are…

Q: Explain the two classes of share capital.

A: There are two classes of share capital: Preference Share Capital Equity Share Capital Preference…

Q: Explain and discuss the preemptive right of common stockholders. Is this fair? Why or why not?

A: Common stockholders are actually the real owners of the corporation or company. Preemptive right is…

Q: Define Reacquired Shares.

A:

Q: What are bonus shares?

A: Bonus shares are given from reserves and surplus/retained earnings.

Q: Discuss the problems which can arise when trying to value new issues of shares.

A: A company can collect funds by issuing new shares, which can be either stocks or bonds. A previously…

Q: Differentiate an ordinary share capital from a preference share capital.

A: Introduction:- Generally companies may raise funds or money for investments by way of issue of…