Return formula for common stock?

Q: What is the difference between cumulative and non-cumulative preferred stock?

A: Preference stocks are ownership stocks with fixed dividends without any voting rights. Dividends are…

Q: What is preferred stock and common stock?

A: Paid-in capital: The aggregate sum of cash or other assets received by a corporation from its…

Q: How does preferred stock differ from bothcommon equity and debt? Is preferred stock morerisky than…

A: Difference between equity stock and preference stock: Both equity shares and preference shares…

Q: .What is the value of the stock?

A: The constant growth model is a method used for finding the stock price. It is also called the…

Q: What is the cost of the preferred stock, including flotation?

A: Cost of Preferred stock Rp = Annual Dividend/Current market price - floatation cost

Q: What is the difference between common stock, preferred stock, and treasury stock?

A: The company can raise money from the investors by issuing the common stock or preference stock.…

Q: How do you calculate earnings per share on common stock?

A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…

Q: How does preferred stock differ from common stock?

A: Capital Stock of CorporationCapital stock is issued by the corporation to raise funds from the…

Q: What does the treasury stock method, “proceeds” include?

A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…

Q: What effect do stock dividends or stock splits have on thecomputation of the weighted-average number…

A: Stock split and stock dividend: Stock dividend refers to a distribution of stock of the company to…

Q: What stock valuation models are available?

A: The stock valuation models as follows: Absolute valuation: This method mostly emphases on finding…

Q: What are the basic differences between preferred stock and common stock?

A: Stock:A security issued in a form of certificate is represented as stock, which denotes the right of…

Q: What is meant by a preferred stock?

A: Stocks refer to the concept which is defined as the security that represents the ownership of the…

Q: Treasury stock is generally accounted for by the?

A: The question is based on the concept of cost accounting. Companies occasionally buy their own shares…

Q: How do stock dividends and splits affect stock prices?

A: Answer: Unlike cash dividends, stock dividends and stock splits also influence the market price of a…

Q: On what do stock valuations rest?

A: The answer:

Q: What is the difference between cumulative and noncumulative preferred stock?

A: Cumulative preference shares:   Under a cumulative preference share, if the dividend payments have…

Q: What is the formula for the cost of preferred stock?

A: With flotation cost in %: Cost of preferred stock = Preferred dividend / (Price*(1-Flotation cost)

Q: What is meant by the dividend yield on a common stock investment?

A: Not all the tools of fundamental analysis work for every investor on every stock.  For dividend…

Q: How do you calculate dividend yield for stock?

A: dividend yield is the ration of dividend paid by the firm divided by price of share of the firm.

Q: what are factors that can influence the price of a stock?

A: Stocks are the company’s securities issued by the companies to raise the funds. Prices of stock…

Q: how do I compute or calculate valuation and relative value measure to assses stock correctly?…

A: Valuation of a company can be done through either of the two methods, absolute valuation or relative…

Q: How does cumulative preferred stock differ from noncumulative preferred stock?

A:

Q: What are stock splits and stock dividends? Whatare the advantages and disadvantages of each?

A: Introduction: Usually, dividend is nothing but, sharing a portion of profits of the corporation, as…

Q: How to calculate market price range of common stock?

A: Market price per share: A market price per share is total value of company divided by number of…

Q: How do stock repurchases affect the EPS and ROE ratios?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: What is a stock dividend?

A: Dividends:Dividends are the distributions made to the owners of the company (stockholders) in the…

Q: what is the difference between individual stocks and the stock market

A: Investing means allocating the funds in different securities, assets, or businesses with the motive…

Q: Define the term Common stock?

A: Every company has many types of financing for the business, while major financing will come through…

Q: (a)  Calculate the cost of common equity (stock).                             (b)    Calculate the…

A: a) Last dividend paid (D0) = $0.80 Growth rate (g) = 7% Current price (P0) = $9.50 Floatation cost…

Q: What is the Treasury stock? Give an example?

A: Stockholders’ Equity Section: It is referred to the section of the balance sheet that shows the…

Q: What is current stock price?

A: Stock means equity part of the company. Companies’ capital structure may contain debt, equity, and…

Q: binomial model account of volatility

A: Volatility is simply referred to as the uncertainty or risk in the change in the value of a…

Q: Distinguish between common stock and preferred stock,and explain the difference between market value…

A: Common stock is a security that represents ownership in a corporation. Holders of common stock elect…

Q: Is Preferred stock a hybrid between common stock and debt? Explain how?

A: Answer: Preferred stock is identified with a preferred name. Preference stock is often granted…

Q: ?With regard to stock dividend, which of the following is true

A: The portion of profit paid to the shareholders on timely basis in form of the return over the…

Q: What will be the current stock price?

A: The current price of a stock is the most recent selling price of a stock in the market. It is the…

Q: What is treasury stock?

A: Ownership of an organization can be broken down into small parts or units also known as Shares.…

Q: What is a Stock Split and Stock Dividend?

A: The two terms Stock dividend and stock split are always confused because of a number of similarities…

Q: What is margin requirement (for stock)?

A: While trading for the investments in the stock market, there are two methods through which investors…

Q: what does the term par value of stock mean

A: The company will issue shares to the public for raising the capital for the company. The company can…

Q: what is the dividend paid by this stock?

A: Required rate of return=Annual dividend/Current value

Q: What does a large stock dividend known as?

A: Stock dividends are dividend declaration and distribution of stock dividend. There are two types of…

Q: uss whether the stock pric n in the stock market.

A: Efficient Market Hypothesis -:An significant debate in investors is whether the stock market is…

Q: Divided discount model DDM how to the valuation of the aggregate stock market?

A: What is DDM (Dividend discount model)? The Dividend Discount Model (DDM) is a quantitative strategy…

Q: What determines the price-earnings ratio for a stock?

A: The price earring ratio is one of the most widely-used ratios by investors and analysts to determine…

Q: Define value of preferred stock

A: Preferred stock is a kind of stock considered as a hybrid instrument as it includes features of both…