What are some advantages and disadvantages of stockrepurchases?

Q: How do you carry out your investment strategy for stock securities?

A: The mainly followed investment strategies are value investing, growth investing, momentum investing…

Q: Treasury stock is an asset, or is it a liability? explain.

A: The Answer :

Q: How does the purchase of treasury stock affect the purchaser’s assets and total equity?

A: Treasury stock: It can be defined as the stock that is repurchased or bought back by the issuing…

Q: What is the primary motivation for a forward stock split?

A: Here is the Answer

Q: Explain 'Can efficient market hypothesis and behavioural finance co-exist to explain stock return…

A: Behavioral finance, a branch of behavioral economics, presupposes that psychological impacts and…

Q: What is a stock split and how does it work?

A: Stock and the Spilt are two individual word and has its individual meanings. STOCK: Stock is a…

Q: How can we measure the return on common equity?

A: The return on equity is the percentage earned on the equity investment made by the company. It shows…

Q: Discuss Different situations or reasons that may lead to stock repurchases? Also provide an…

A: Stock repurchasing : Stock repurchase or buyback of shares is a process where a company purchases…

Q: What are the similarities and differences between an overall rate and an equity dividend rate?

A: Answer: Equity is nothing but the difference between asset owning values and liabilities against…

Q: Which of the following is not a defining feature of common stock? a residual claim on assets voting…

A: Common stock: The common stock is considered as a security that signifies proprietorship in a…

Q: How is preferred stock similar to long-term debt? How is it comparable to equity?

A: The Answer :

Q: Would a typical common stock provide cash flows more like an annuity or more likean uneven cash flow…

A: Common stock is an instrument that is the property of a company. Common stock investors elect the…

Q: Explain required rate of return on stock

A: The required rate of return is the minimum acceptable rate of return that an investor expects to…

Q: Explain the advantages of stock repurchase compared to regular cash dividend.

A: Cash dividend is the return provided to the equity shareholders against the amount they invested in…

Q: What are the computational guidelines for determiningwhether a convertible security is to be…

A: Convertible securities: Convertible security is a security that has the potential to be converted to…

Q: What is meant by the term “distributionpolicy”? How has the mix of dividend payoutsand stock…

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

Q: Stock appreciation right would normally be settled through

A: Second option is wrong because stock appreciation right is not settled through issue of share…

Q: why is money market necessary but not sufficient for the liquidity of securities on the stock market

A: Money market (MM) is a place where short term (ST) securities are traded. Generally, governments or…

Q: When does reverse stock split occurs?

A: Stock split means reducing the face value of single share. For example, A share of $100 will be…

Q: Explain repurchase (stock)

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

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: Why are unrealized gains and losses on trading securities reported in the incomestatement?

A: Unrealized gains and losses: Trading securities are reported at their fair values. Unrealized gains…

Q: How do we determine the book value of a stock?

A: Book value is the value of total equity or net asset value of the business. The book value of stock…

Q: Would a typical common stock provide cash flows like an annuity or more like an uneven cash flow…

A: Common Stock is a security that represents ownership in a firm. Common stock holder can earn returns…

Q: Why would a firm repurchase its stock? Discuss.

A: Repurchasing shares: It is also called buyback of shares. The company purchases its previously owned…

Q: What are dividend reinvestment plans?

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

Q: Determine reasons behind stock repurchases.

A: Stock Repurchases: Stock repurchase also known as share buyback of shares represents the shares…

Q: Is preferred stock comparable to long-term debt in any way? Is it comparable to equity in any way?

A: Preferred stocks are the form of shares being issued by a company for increasing its capital. The…

Q: What factors are important when calculating the intrinsic value of a stock?

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: How can stock repurchases help a company operate in accordance with the residualdividend model?

A: The Residual Dividend model is a model in which the dividend to be paid to the shareholders is…

Q: Cost of Capital

A: INTRODUCTION In simple words cost of capital is the cost incurred for using capital both equity and…

Q: What are the two sources, or components of return for stock?

A: A share in the ownership of a company is known as stock. When stock is purchased a small piece in…

Q: How is a stock valued? What are the key variables considered in the valuation?

A: There are many methods of valuation of stock some are based on earnings and growth of stock and…

Q: Define stock repurchase

A: STOCK REPURCHASE- ''Stock repurchase or repurchase could be a thanks to come money to investors,…

Q: What is a reverse stock split?

A: Stock split: Stock split refers to the dividing one share into two of more shares. It is usually…

Q: What are some major advantages to cash dividends that simply aren’t available through share…

A: The dividends are the part of distributable profits that are given to the shareholders of the…

Q: What is an asset allocation in investing equity securities?

A: Asset allocation means the investment portfolio is splitted based on the asset categories like…

Q: How does preferred stock compare to long-term debt? In what respects is this comparable to equity?

A: The preferred stock and common stock are the financial instruments to raise money from the market.

Q: Discuss the application of the Capital Asset Pricing Model in stock selection.

A: CAPM is an abbreviation used for Capital asset Pricing model which helps the investors in evaluating…

Q: Under what circumstances do we use the equity method to account for an investment in stock?

A: The equity method seems to be an accounting methodology that a firm uses to recognize profits gained…