Upon exercising share options, the resulting increase in the additional paid-in capital would be equal to a. The difference between the fair value of the shares and the par value of the shares, plus the fair value of the share options b. The difference between the exercise price and the par value of the shares c. The difference between the fair value of the shares and the par value of the shares d. The difference between the exercise price and the par value of the shares, plus the fair value of the share options
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- Donated shares will have the effect of reducing? a. Outstanding shares b. Authorized shares c. Treasury shares d. Issued shares 11. Upon exercising share options, the resulting increase in the additional paid-in capital would be equal to a.The difference between the exercise price and the par value of the shares, plus the fair value of the share options b. The difference between the fair value of the shares and the par value of the shares c. The difference between the fair value of the shares and the par value of the shares, plus the fair value of the share options d. The difference between the exercise price and the par value of the shares 1. What is the accounting for treasury share transactions? a. On re-issuance of treasury shares, a gain or loss is recognized equal to the difference between the previous repurchase price and the re-issuance price. b. Treasury shares are…Which of the following statement about a rights issue is correct? a. The share price can be expected to increase on the ex-rights date b. On the ex-rights date the rights separate from the share c. The subscription price is usually greater than the market price d. A rights issue is offered to an investor whether they are an existing shareholder or not e. If you buy shares cum-rights you are not entitled to participate in the rights issueWhich 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
- Which of the following statements is true in relation to the call price of preference shares? The call price is used in computing book value per share. In the absence of call price, the liquidation value is disregarded and the par or stated value is instead used. The call price is the amount paid to preference shareholders upon redemption of preference shares during the lifetime of the entity. All of these statements are true.If the stock makes a dividend payment before the expiration date, then the put-call parity relation is Value of call = value of put − share price + PV of dividend − PV of exercise price. None of the above. Value of call = value of put + share price + PV of dividend + PV of exercise price. Value of call = value of put + share price − PV of dividend − PV of exercise price. Value of call = value of put + share price + PV of dividend − PV of exercise price.What is the difference between a stock dividend and a stock split? As astockholder, would you prefer to see your company declare a 100% stockdividend or a 2-for-1 split? Assume that either action is feasible.
- 7. 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.On what basis are NQ stock options usually taxed when the option has no readily ascertainable fair market value? a. the difference between the fair market value of the shares when purchased and the option price b. the fair market value of the shares c. the option price plus 1⁄2 the fair market value of the stock when sold d. the price when the shares are sold minus the original option valueSee the attached image for information:a. How much is the balance of the Share Capital – Ordinary as of December 31, 2021? (Provide solution)b. How much is the balance of the Share Premium – Ordinary as of December 31, 2021? (Provide solution)c. How much is the balance of the Share Capital – Preference as of December 31, 2021? (Provide solution)
- Explain the significance of par value. Does par value indicatethe reasonable market price for a share of stock? Explain.Share Price can be determined by the cash flows and risk. Assume other things held constant, increased in risk will result in a. a lower share prices b. a higher share prices c. unchanged share price d. an undetermined share pricesWhen non-par value shares are reacquired at a cost greater than their average issue price and cancelled, what account(s) should be debited? Select one: a. The share account for the total cost. b. The share account for the average issue price, contributed surplus-repurchases up to its account balance, other contributed surplus relating to this class of shares in proportion to the number of shares repurchased versus outstanding and lastly retained earnings for any remaining amount. c. The share account for the average per share amount, retained earnings for the additional amount, and lastly contributed surplus for any remaining amount. d. The share account for the average per share amount and a loss account for the additional amount. e. none of the above answers are correct.