Q: Value of the shares
A: Value of the shares = Number of shares * Value per share Given that, Number of shares = 125 Value…
Q: Define cost of common stock
A: Cost of equity: It is the return a firm ought to decide in case investment satisfies the criteria of…
Q: are units of equity or ownership in a company. * O Stocks O Bonds
A: Company requires funding for their investment which can be obtained from broadly two sources.…
Q: Define common stock.
A: Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of…
Q: Define Preferred dividends.
A: Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder…
Q: Stock Split
A: Stock split is a situation where a particular number of shares are offered for each share held of…
Q: When shares without par value are sold, the proceeds shall be credited to
A: Issue of shares is one of the important source of finance for the business. Shares can be common…
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: What is the weighted average number of ordinary shares outstanding?
A: Calculation of weighted average number of ordinary shares outstanding: Date Particulars Share…
Q: What is the total Share Holder's Equity
A: Shareholders' equity is the owners' equity which is the owners claim over net assets of the company.…
Q: Explain the following terms • Authorized Share Capital • Issued Share Capital Bonus Shares
A: Authorized Share capital Authorized capital is the maximum number of shares a public limited company…
Q: Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the…
A:
Q: Calculate the amount of different categories of share capital and prepare the abstract of SFOP
A: Face value per share = 5,000,000/10,000,000 = OMR 0.50 Amount of…
Q: What is the number of shares outstanding?
A: The shares which are outstanding is the shares which has been in the market which means those shares…
Q: Which of the following would affect the Share Premium - Issuance account in relation to treasury…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: Describe what is meant by the weighted-average number of common shares.
A: Weighted average shares outstanding refers to the number of shares of a company calculated after…
Q: Explain the difference between authorized, issued, and outstanding shares.
A: Stockholders’ Equity: Stockholders’ Equity is the total amount of capital given to a company by its…
Q: Discuss the differences between common shares and preferred shares.
A: While both common shares and preferred shares are part of the share capital of a company they are…
Q: Define stock purchase right
A: Stock purchase rights are generally issued by a company if they have more amount of debt in which…
Q: The number of outstanding shares is:
A: Treasury stock represents the repurchase of the own share by the company. It reduces the outstanding…
Q: Share Capital and Retained Earnings are Equity accounts. Select one: True False
A: Owner equity means the amount that belong to the owner of the business. Any profit will increase…
Q: uding the Non-C
A: The Stockholders' Equity including the Non-Controlling Interest as,
Q: What is a share of stock? What is a bond? Explain their differences andsimilarities.
A: The bonds and shares are issued in the capital market in order to fulfil the capital requirement of…
Q: What are the rights of preferred shares?
A: Two kinds of shares may be issued. 1 ) Preference shares 2 ) Equity shares.
Q: Identify the main differences between common stock and preferred stock.
A: Preferred stock are hybrid type of security between the equity and bonds and they have features of…
Q: (d) Explain and justify the accounting treatment for share dividends and share splits.
A: Share dividend is the form of dividend in which company issue shares as dividend rather than cash.…
Q: Identify the three primary components of return on common stockholders 'equity.
A: Return on equity: It is a measure of the financial performance of a company relating to their…
Q: Define Stock Dividends and Stock Splits.
A: Dividend: Dividend is the return on stock investment earned by the shareholders of a firm.
Q: Explain Typical Rights of Preferred Shares.
A:
Q: Explain Resale of Shares.
A: Introduction: Resale of shares is nothing but selling the shares that are previously bought by…
Q: Treasury shares are accounted for using the Fair value method O Cost method a or b neither a nor b
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Explain Stockholders’ Rights.
A: The rights are explained as,
Q: Define Stock split.
A: 1. A stock split or stock divide increases the number of shares in a company. It is an issue of new…
Q: What is the difference between the fully paid shares and the partially paid shares?
A: Equity: It is the amount shareholder invested in the company. This is the difference between total…
Q: Define shares at par value.
A: Definition: Shares: A Share is a term that is used to define the ownership certificates of the…
Q: Define Reacquired Shares.
A:
Q: Most preferred shares are cumulative. Explain what this means.
A: Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder…
Q: value a share of common stock.
A: Common stock is the ordinary shares issued by the company. It shows the equity that offers the share…
Q: describe the components of shareholders’ equity
A: Shareholder's equity is calculated as the difference between the company's total assets and the…
Q: Indicate how each of the following accounts should be classified in the equity section.(a) Share…
A: Equity: The term equity is also known as net assets. It is the residual interest of the owner in the…
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…
Q: Which of the following should be reported for share capital? Select one: a. The shares outstanding…
A: Shares represents the portion or percentage of ownership interest of the shareholders in the entity.…
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- Which of the following correctly ranks the costs of debt (rd), preferred stock (rp), retained earnings (rs), and new common stock (re)? Question 10 options: rd < rp < rs < re rd > rp > rs > re rp < rs < re < rd rp < rs < rd < re7. If treasury shares are subsequently retired and the cost of the treasury shares exceeds the par value, the difference is charged Group of answer choices a. first, Share premium from the original issuance and then Retained Earnings. b. first to share premium from original issuance and then share premium from treasury shares of the same class. c. first to share premium from original issuance, and then share premium from treasury shares of the same class and then to retained earnings. d. first to share premium from treasury shares of the same class and then the balance to retained earnings.If shares are issued for a non-cash asset, the share should be recorded at? a. Zero b. Fair market value c. Par or stated value d. Cost
- Compute for the total amount of dividend given in the individual assumptions allocated for ordinary shares. h. Preference share capital is cumulative and nonparticipating i. Preference share capital is cumulative and participating j. Preference share capital is cumulative and participating up to 8%1. How much is the excess of par to be used for book value per share computation? 2. How much is the BOOK VALUE PER SHARE for PREFERENCE shares considering that the preference shares are cumulative and participating? (Present answer in 2 decimal places, example: xx.xx)Consider the following table of Earnings Components: Firm A Firm B Firm C Reported EPS $ 12 $ 15 $ 18 Analyst’s EPS composition: Permanent component (βP = 5) 80 % 60 % 75 % Transitory component (βT = 1) 10 % 35 % 25 % Value-irrelevant component (β0 = 0) 10 % 5 % 0 % The implied share price of Firm C’s stock is: Multiple Choice $18.00 $63.00 $72.00
- Mandatorily redeemable preferred stock (preference shares) is reported among liabilities and their dividends are reported in the income statement as interest expense using a. U.S. GAAP. b. IFRS. c. Both U.S. GAAP and IFRS. d. Neither U.S. GAAP nor IFRS.Share Premium account is recorded as a credit when- a) Shares are sold higher than par value b) Shares are sold less than the par value c) Shares are sold at par value d) All of theseWhat 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.?
- 2. The following are the common sources of share premium, except Group of answer choices a. Excess over par or stated value b. Donated capital c. Revaluation surplus d. Issuance of share warrants1. Explain the three varying characteristics of common shares. 2. What are flotation costs? 3. How is cost of common equity computed for no growth stock? for constant growth stock? 4.What is a dividend yield? 5. Define the following terms used in Capital Asset Pricing Model (CAPM) to compute for cost of equity: a. Risk-free rate b. Stock's Beta Coefficient C. Market risk premium 6. How is cost of equity under Bond Yield Plus Risk Premium Approach computed? 7. How is weighted average cost of capital (WACC) computed?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 participating