Share option compensation is what accounting subject?

Q: Why is the return associated with common stock referred to as a residual claim? Contrast this kind…

A: Common stock holders are the owners of the business. Profits earned by the company will be the…

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: Write Example for preference dividend?

A: Formula: Preference dividend = Preference shares x Preferred dividend rate

Q: What are the advantages of using restricted stock to compensateemployees?

A: Restricted stock are the shares of a company, which is issued to its employees, but not entirely…

Q: What are the issues with the book value and liquidation value per share approach?

A: Bok value per share measures the book value of the firm per share and represent the minimum value of…

Q: What are the considerations that may be received in exchanged for share capital? What are the…

A: The money a firm raises by issuing common or preferred shares is referred to as share capital. With…

Q: What is the effect of a company electing the fair value option with respect to a held-to-maturity…

A: Held-to-maturity security: The debt securities which are held by the investor with an intent to hold…

Q: What is share capital retirement? What is the effect of this? Discuss.

A: Share Capital Share capital is the fund which are raised from the public for the operations of the…

Q: What determines if a potentially dilutive security is dilutive or anti-dilutive? a. the share price…

A: Earning per share means the profit earned after taxes per share outstanding. Diluted earning per…

Q: payoff for put option buyer and seller?

A: A put option is an instrument which provides its holder an option to sell an underlying asset on a…

Q: What are Nike’s choices in accounting for the share repurchases?

A:

Q: Discuss the assumptions, approach, estimation, benefits, limitations, and criticisms of Arbitrage…

A: Arbitrage Pricing Theory is a multi-factor pricing model. Arbitrage Pricing Theory can be used to…

Q: How does a dividend payment impact the option price?

A: The option price(call and put) is impacted by the new information about the announcement of the…

Q: explain whether true or false : The interest rate parity does hold in realty

A: Interest rate parity is an releationship between spot exchange rate and the forward exchane rate…

Q: , How is the ability-to-pay principle (c) different from the benefit principle? Briefly discuss the…

A: Introduction:-  Ability to pay—A tax fairness idea that asserts that persons with various levels of…

Q: Describe the nature of preference dividend and equity dividend with your own suit

A: Answer: Preference dividend is the dividend that are given on preference shares and equity dividend…

Q: When an acquirer chooses between cash offer or stock offer, which of the followings is the least…

A: Acquisition refers to obtaining the other company wholly or partially by paying the cash…

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: What connection, if any, does a firm’s market value have with its liquidation and/or going concern…

A: Liquidation- It is a state when the business of the entity is going to wind up by selling the net…

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 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: Is share dividend payable a current or a non current liability? Explain your answer.

A: The dividend is payable to shareholders on a number of shares they hold as of the date of…

Q: What is the fair value option? Where do companies thatelect the fair value option report unrealized…

A:

Q: Define stock option compensation plan

A: Employee Stock Option Plans is a plan  wherein the employees have the right to buy a number of…

Q: What is the cost of preferred equity?

A: Cost of preferred stock is the rate of return derived from the preference stock by the…

Q: How are the earnings per share beneficial for the stakeholders?

A: Earnings per Share (or) EPS are the earnings of the company. And the stakeholders for whom these…

Q: Why does IPO underpricing exist?

A: IPO - IPO stands for Initial Public Offer. When company want to list their shares on the stock…

Q: What is the advantage and disadvantage of paying your employees stock option?

A: employee stock option plan is a plan that gives benefit to the employees ownership or shares in the…

Q: What amount should be credited to Share Premium?

A: Computation of fair value of Net identifiable assets Particulars Amount Current Assets…

Q: Why is premium on issue of debentures considered a capital profit?

A: Debenture: Debenture is a type of debt instrument and it is unsecured by collateral. Since,…

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: What is equity risk premium?

A: The risk premium is the extra return an investor receives for taking market risk. We know that risk…

Q: Explain return on common equity (ROE)

A: Return on equity is calculated by dividing the net profit by shareholder's equity. Shareholders'…

Q: What is the fair value option? Where do companies that elect the fair value option report unrealized…

A:

Q: at is the partial equity metho

A: Partial equity method: The partial equity method may be a compromise between the initial value…

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: What are the differences between mutually exclusive, non-mutually exclusive,and capital rationing…

A: DIFFERENCE BETWEEN  MUTUALLY EXCLUSIVE ,  NON MUTUALLY  EXCLUSIVE ,AND CAPITAL RATIONING DECISION…

Q: Explain how electing the fair value option affects accounting for investments.

A: The fair value option provides the business the option to record the financial instruments at fair…

Q: What are bonus shares?

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

Q: The pre-emptive right of a common stockholder is the right to?

A: Preemptive Right Preemptive Right are defined as the rights which are giving only to the early…

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: What is the quoted equity instrument

A: An equity instrument refers to a document which evidences  the ownership right in a company. Equity…