What are the advantages of holding stock in a company versus holding bonds issued by the same company?

Q: What is a share? What is a bond? What is the difference between holding the share of a company…

A: Shares are the part of Equity of the company. Bonds are the part of liability for the company.

Q: Why would a company choose to issue bonds instead of issuing stock?

A: Concept:

Q: If you own a company what you prefer to issue ordinary shares or bonds, explain why?

A: Shares of a company represent the ownership, and a shareholder is considered an owner of the company…

Q: own stock that they have previously issued?’

A: company wants to repurchase some of its own stock that they have previously issued because of…

Q: What are some reasons corporations issue stock dividends?

A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in…

Q: What is the difference between a Corporate Stock and a Corporate Bond?

A: Corporate Stocks are represents as equity portion of the issuing corporation. Owners of Corporate…

Q: According to our authors, when is the purchase of stock in one company by another classified as a…

A: Trading security- Classification of securities- There are three different classification: a) held…

Q: Why would a company invest in debt or equity securities?

A: Debt securities: The financial instruments which are bought by investors, or corporations, or mutual…

Q: What are the different sources of risk for an investor who holds a corporate bond, what are…

A: Both  bonds and common stocks are financial securities and hence the holders of these securities…

Q: From a corporation’s point of view, how does preferred stock differ from common stock?

A: Difference between Preferred and Common Stock from a corporation's point of view:   1. Preferred…

Q: that represent partial ownership of a firm. Sha

A: Loan or bond are the securities that represents lender or long term financial creditors of the firm.…

Q: Contrast the differences/similarities of common stocks and bonds. Explain how they would be used in…

A: The difference between the common stock and the bonds is that the stocks are the shares that define…

Q: hy would a company choose to not pay dividends on its common stock?

A: Dividends are the return earned by the shareholders in lieu of the amount invested in company's…

Q: What is the difference between a stock split and a stock split effected in the form of a stock…

A: Stock split is an events that increase the outstanding shares and reduce the stated par value. For…

Q: When a company's only potential common shares are convertible bonds:

A: Diluted EPS: Diluted EPS is an option what If the Convertible preference share, options are…

Q: What are the relative benefits and drawbacks of selling bonds, common stock, and preferred stock…

A: The main objective of the company is to reduce the overall cost of issuing the capital. The Company…

Q: ders and debtholders differ in their claim of the firm’s cash flows? How does such a claim…

A: Introduction : In simple words, stock refers to the equity claim in a company under which the holder…

Q: What benefits might a company gain from having its shares listed on a stock exchange? +resources

A: Companies raise equity financing by listing shares on stock exchange.

Q: What are some reasons that a company might choose common stock as means of financing their business…

A: Common Stock Common stock represents the ownership of a corporation by its stockholders. It allows…

Q: Why do stock companies prefer equity financing in raising money for their operations than debt…

A: Equity financing refers to the process whereby a company raises the funds by issuing equity. The…

Q: What is Treasury share? What are the reasons that the corporation for reacquisition of shares?

A: Treasury shares are the shares that are brought back by the issuing entity from the open market from…

Q: Discuss the reason(s) behind the conflict of interest between corporate stockholders and…

A: Corporate Stockholders: A stockholder is the owner of the shares purchased of a company. There are…

Q: Contrast the differences/similarities of common stocks and bonds. How are they used in the corporate…

A: Common Stock: This security represents the ownership of a company. Common stock is also known as a…

Q: what is the cost of debt after tax? what is the cost of PS what is the cost of common stock? what is…

A: Given information: In the given question, the number of shares, bonds and preference shares are…

Q: What do you call those investors who buy shares of stocks of a company and become legal part owner…

A: The company includes owner and creditor during the year. Owners are the investors who invest into…

Q: What are the two primary ways companiesraise common equity?

A: The mix of equity and debt in a business organization is known as the capital structure of the…

Q: What factors to determine in choosing either Bonds /  Preference Shares or Ordinary Shares  as the…

A: Capital Structure is the structure of the firm capital which consists the mix of debt , equity and…

Q: share capital, subscription of shares, and treasury shares

A: The company issue share capital to fulfil its capital requirement. When the public pays the…

Q: What other techniques can be applied to compute the intrinsic value of shares of the company?

A: Intrinsic value is the value inherent in the stock of a company based on how well it is expected to…

Q: How will investors maximize the returns of corporatebonds or redeem their corporate bonds?

A: Corporate bond is defined as the bond, which is used to issue through the company for increasing the…

Q: bond is a liability of the issuing company and a share of stock represents ownership in the company

A: Bonds are the instrument issued by company acknowledging the debt due from company to bond holder…

Q: Is there a type of stock preferable over the other? Should a corporation also utilize borrowing if…

A: Equity Stock represents the equity shares of a company. Equity shares are the part of company owned…

Q: Some companies issue shares at a premiumand others at discount. What are the factors influencing the…

A: Shares- A share is a piece of property that can be freely transferred unless the law or a contract…

Q: What effect does the stock split have on Nike’s assets? Its liabilities? Its shareholders’ equity?

A:

Q: What do you mean by private placement of shares? What are the options for a company?

A: It happens when an organization makes a contribution of securities to an individual or a group of…

Q: What factors to be considered in choosing either bonds, preference shares or ordinary shares as the…

A: A company can raise capital by various means – by issuing bonds or by issuing preference shares or…

Q: ecrease the per-share book value of the stock held by shareholders b. To increase the per-share…

A: A share repurchase may have an impact on a company's BVPS. Because BVPS is used to calculate the…

Q: What is most likely to happen to the earnings per share and market price of a certain stock when a…

A: Stock Dividend: A firm issues stock dividends instead of paying cash to its share holders and…