In a primary market, ______ securities are involved, where the total number of shares issued by firms will ______. Question 16 options: 1) new, remain unchanged 2) new, increase 3) existing, unchanged 4) existing, increase
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Q: For which of the following purposes is it LEAST logical for a company to issue equity securities on…
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- a) What are the basic ways for the analysis of investment in equity securities in stock market? b) How does CSE select 30 companies for CSE-30 stock index? c) “Fundamental Analysis provides an analytical framework for rational investment decision making.” Explain.Which of the following statements is true regarding diluted earnings per share? Select one: a. Contingently issuable shares are considered outstanding in the computation of diluted EPS when any conditions for issuance are currently being met. b. To incorporate convertible bonds into the calculation, the denominator of the EPS fraction is decreased by the additional common shares assumed. c. It is assumed that stock options are exercised at the beginning of the period (or at the time the options are issued, if later) and the cash proceeds received are used to buy back (as treasury stock) as many of those shares as can be acquired at the closing market price for the period. d. To incorporate convertible securities into the calculation, the numerator is decreased by the interest (after-tax) that would have been avoided in the event of conversion.What does the additional paid-in capital account represent?a) The difference between the par and the stated value of common stock.b) The price changes that result for stock trading subsequent to its original issue.c) The market price of all common stock issued.d) The amount by which the original sales price of stock exceeds the par value.
- The price of the share / stock that a company observe from a financial market such as Muscat Stock Exchange is known as ..................... Select one: A. Fundamental Price B. Extrinsic Price C. Intrinsic Price D. Market PriceWhich of the following characteristics accurately describes the stock market? An active market that determines the price of a firm’s shares A fixed-income market where participants buy and sell debt securities The bid-ask spread in a dealer market represents the profit that a dealer would make on a transaction involving a security. Which of the following statements best describes the bid-ask spread? The difference between the closing price of the security and the opening price of the security on the day of the transaction. The sum of the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it. The difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it. Fernando, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader, Ally, is willing to sell 1,500 shares of the same stock. Unfortunately, Fernando…Analyzing EPS Match each term, 1 through 12 with its impact on the EPS calculation. Assume a simple capital structure unless the scenario indicates otherwise. Ignore the possibility of antidilutive securities and the initial impact on net income of a particular transaction. A scenario may have more than one impact on the EPS calculation. Scenario 1. Noncumulative, 7% preferred stock dividend with no dividend declaration. 2. Cumulative, 7% preferred stock dividend with no dividend declaration. 3. Issuance of stock options. 4. Retirement of common shares. 5. Stock dividend declared during the year. 6. Stock dividend declared after the calender year but before financial statements are issued. 7. Stock split. 8. Issuance of convertible noncumulative preferred stock with no dividend declaration. 9. Issuance of convertible bonds. 10. Conditions for issuance are met for unisssued contingent shares. 11. Purchase of shares for the treasury. 12. Granting of…
- 23. In accounting for minority passive equity investments, the unrealized holding gain or loss on equity securities is recorded on: Multiple Choice the balance sheet as a deferred charge in the period of the security price change. the balance sheet as a separate component of stockholders’ equity. the income statement in the period of the security price change. the income statement in the period after the security price change.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 < rewhich one is correct please confirm? QUESTION 7 The cost of equity capital for non-dividend paying stocks can be determined by ____. I. using the Capital Asset Pricing Model II. estimating ke for comparable dividend-paying stocks in their industry a. Only statement I is correct. b. Only statement II is correct. c. Both statements I and II are correct. d. Neither statement I nor II is correct.
- For which of the following purposes is it LEAST logical for a company to issue equity securities on the primary market? For capital raising For liquidity improvement For increasing the return on equity None of the options. All of the given purposes support primary shares issuance.Preferred stock is similar to a bond because: Group of answer choices it has a fixed amount to the investor. it represents an ownership interest. all of these. it has a maturity at which time the corporation repays par value.Which of the following correctly indicates how the issue price of common stock shares would be valued when a corporation makes a follow-on issue? Market forces determine the selling price, as it is marketed by the selling group The highest expected issue price per share that can be obtained while still selling of all of the shares is selected The highest expected issue price per share that can be obtained, regardless of the selling group's ability to market the shares, is selected The market price of existing shares is used as guidance
