What is Pro rata allotment of shares?

Q: why does the value of a share of stock depend on dividends?

A: Dividend on stocks: Dividend is the proportion of profit that the company distributes among its…

Q: Discuss the advantages and disadvantages of afirm repurchasing its own shares.

A: If the organization raises the dividends to discard abundance of cash, this higher dividend must be…

Q: Which of the forms of ownership obtain it's capital by inviting the public to buy shares

A: The money raised by selling shares is referred to as a company's share capital. The maximum amount a…

Q: When can shares be Forfeited?

A: Shares are issued by the company to the public for ownership in the company The shares have an…

Q: Should a corporation issue common stock or preferred stock and why?

A: Few companies offer both preferred and common shares. Most companies, on the other hand, only issue…

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: When shares without par value are sold, the proceeds shall be credited to

A: Issue of shares is one of the important source of finance for the business. Shares can be common…

Q: What are the distinguishing classes of shares?

A: Shares: The capital of the company is divided into units of small denomination. It is called Shares.…

Q: Bhefly discuss the difference between rights of holders of ordinary shares and preference shares…

A: The dividends are the earnings of the shareholders for their shareholdings in the company.

Q: Explain the way contingently issuable shares are incorporated in the calculation of EPS.

A: Earnings per cash (EPS):   The amount available as earnings for each of the common shares…

Q: inary share capital upon the decl

A: Shares refer to a financial instrument that is issued to raise funds from the market by the company…

Q: over subscription of shares will be dealt with

A: Over subscription of shares occurs when more applications are received than number of shares…

Q: What is the number of shares outstanding?

A: The shares which are outstanding is the shares which has been in the market which means those shares…

Q: Explain the difference between authorized, issued, and outstanding shares.

A: Stockholders’ Equity: Stockholders’ Equity is the total amount of capital given to a company by its…

Q: What is meant by Forfeiture of shares?

A: Common stock: Common stock is the instrument used by the company for raising funds from the general…

Q: The number of outstanding shares is:

A: Treasury stock represents the repurchase of the own share by the company. It reduces the outstanding…

Q: State any three points of difference between Equity shares and debentures.

A: Difference between equity shares and debentures:

Q: uding the Non-C

A: The Stockholders' Equity including the Non-Controlling Interest as,

Q: What is a share of stock? What is a bond? Explain their differences andsimilarities.

A: The bonds and shares are issued in the capital market in order to fulfil the capital requirement of…

Q: What are the rights of preferred shares?

A: Two kinds of shares may be issued. 1 ) Preference shares 2 ) Equity shares.

Q: What were the total proceeds from the common-stock sale?

A: The question is based on the concept of issue of Common stock with underwriting of issue.

Q: State the difference between common stock and preferred stock.

A: Shareholders' fund consist of two types of stock namely common stock and preferred stock. Both…

Q: What is Bonds / Preference Shares and Ordinary Shares

A: Bond, preference shares and ordinary shares are the financial instrument issued for purpose of…

Q: Explain Typical Rights of Preferred Shares.

A:

Q: Explain Resale of Shares.

A: Introduction: Resale of shares is nothing but selling the shares that are previously bought by…

Q: Which of the following is not a characteristic that sets preferred stock apart from common stock?A.…

A: Shares of the company are an important source of finance that is being used. These can be common…

Q: Should preference shares be disclosed as equity or as debt?

A: Stocks: Stocks are shares in ownership in other companies. It represents the capital raised by a…

Q: How do restricted stock awards differ from restricted stock units (RSUs)?

A: Restricted stock: Restricted stock is the portion of shares held up by the management, to be issued…

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 is advantges and dis advantge of shares repurchacse to the company

A: A share repurchase is also known as buyback. Here the concerned company buys back its own shares…

Q: What is the difference between the fully paid shares and the partially paid shares?

A: Equity: It is the amount shareholder invested in the company. This is the difference between total…

Q: What are the advantages and disadvantages of (public) joint stock?

A: Joint stock is that stock which is held in a joint stock company in which shareholders can purchase…

Q: Define Reacquired Shares.

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 are dual class shares? Why do they sell at a premium?

A: Dual class shares are often used by companies to raise equity financing. This class of shares are…

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: What amount should be reported as share capital?

A: The share capital is credited with only the face value of shares issued. This is calculated by…

Dividend Valuation

Dividend refers to a reward or cash that a company gives to its shareholders out of the profits. Dividends can be issued in various forms such as cash payment, stocks, or in any other form as per the company norms. It is usually a part of the profit that the company shares with its shareholders.

Dividend Discount Model

Dividend payments are generally paid to investors or shareholders of a company when the company earns profit for the year, thus representing growth. The dividend discount model is an important method used to forecast the price of a company’s stock. It is based on the computation methodology that the present value of all its future dividends is equivalent to the value of the company.  

Capital Gains Yield

It may be referred to as the earnings generated on an investment over a particular period of time. It is generally expressed as a percentage and includes some dividends or interest earned by holding a particular security. Cases, where it is higher normally, indicate the higher income and lower risk. It is mostly computed on an annual basis and is different from the total return on investment. In case it becomes too high, indicates that either the stock prices are going down or the company is paying higher dividends.

Stock Valuation

In simple words, stock valuation is a tool to calculate the current price, or value, of a company. It is used to not only calculate the value of the company but help an investor decide if they want to buy, sell or hold a company's stocks.