Which of the following is not a right of those who own common shares? Obtain proportionate dividends once announced. Obtain periodic interest. Right to purchase more shares if company issues new shares. Vote for company directors. Residual proceeds from asset disposal in liquidation.
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1. I need help with multiple choice finance home work question
Which of the following is not a right of those who own common shares?
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- d. (1) What are the two primary ways companies raise common equity? (2) Why is there a cost associated with reinvested earnings? (3) Jana doesnt plan to issue new shares of common stock. Using the CAPM approach, what is Janas estimated cost of equity?Which one of the following statements apply only to preference shareholders and not to equity shareholders a. Shareholders risk the loss of investment b. Shareholders bear the risk of no dividends in the event of losses c. Shareholders usually have the right to vote d. Dividends are usually given at a set amount in every financial yearMatch the terms to the definition: Receive stipulated dividends, get paid first when there are profits, no say in corporate decisions. Are creditors not owners, get paid first regardless of profit or not, if company goes bankrupt they get paid first Last to get paid, able to vote in matters concerning the corporation A. Common Stock B. Preferred StockC. Bonds
- which one is correct please confirm? QUESTION 26 Under dividend reinvestment plans, shareholders can automatically ____. a. transfer from retained earnings accounts to equity accounts. b. use dividends to purchase additional shares c. reduce their taxable income d. increase their cash inflowsThe preemptive right allows common stockholders to: Group of answer choices vote for the board of directors. maintain a proportionate share of ownership in the firm. increase their wealth by selling their rights. preempt the protective covenants of bondholders. convert common shares to preferred shares.Question Two Discuss the benefits and drawbacks, to the shareholders of a company, of a public listing on a stock exchange compared to private equity finance as a way of disposing their shares. Discuss circumstances in which a Management Buy - Out (MBO) might be an appropriate form of divestment from a business. Explain the factors the venture capital fund is likely to consider or impose when financing the MBO
- Indicate whether the following statements are true or false. If the statement is false, explainwhy.a. If a firm repurchases its stock in the open market, the shareholders who tender thestock are subject to capital gains taxes.b. If you own 100 shares in a company’s stock and the company’s stock splits two-forone,you will own 200 shares in the company following the split.c. Some dividend reinvestment plans increase the amount of equity capital available tothe firm.d. The Tax Code encourages companies to pay a large percentage of their net income inthe form of dividends.e. If your company has established a clientele of investors who prefer large dividends,the company is unlikely to adopt a residual dividend policy.f. If a firm follows a residual dividend policy, holding all else constant, its dividendpayout will tend to rise whenever the firm’s investment opportunities improve.Which one of the following statements is the most correct? A. Preferred stock has a fixed dividend that does not change. B. All classes of common stock have one vote per share. C. Common shareholders elect the CEO of the company D. Dividends are tax-free income for individual investors.A. Stockholders can transfer wealth from bondholders. As a finance analyst, you are required to explain how the following actions by stockholders transfer wealth from bondholders. Again, in what ways can the bondholders protect themselves against these actions?i. An increase in dividendsii. A leveraged buyoutiii. Acquiring a risky business B. Why might the two (2) disciplinary mechanisms of shareholders against managers not work? C. Union Pacific Rail road reported net income of $770million after interest expenses of $320 million in a recent financial year. The corporate tax rate was 36%. It reported depreciation of $960 million in that year, and capital spending of $1.2billion. The firm also had $4billion in debt outstanding on the books, was rated AA (carrying a yield to maturity of 8%), and was trading at par (up from $3.8 billion at the end of the previous year). The beta of the stock is 1.05, and there were 200 million shares outstanding (trading at $60 per share), with a book…
- If the corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called? Can this amount be treated as a gain, income, or profit for the corporation? Please give the reason for your answer. Assume one year later (2019) the company KY Jeweller’s Ltd has been formed and the owners are desirous of companying several financial transactions and possible outcomes to assist in guiding their decision-making process. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information which is grouped according to your fist name initial. The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues ___ () shares…All of the following statements are correct, except, a. An investor may have significant influence even if it has 15% voting power. b. An investor may not have significant influence even if it has more than 20% voting power. c. Under the equity method that is used to account for investment in associates, cash dividends are treated as income. d. Share dividends do not result to a change in the total equity of the investee.Mr. Daniel has preferred shares in ABC Corporation. The Board of Directors of ABC is thinking of selling substantially all of the company’s assets. A meeting was called to vote on said matter. Mr. Daniel is thinking if he can vote on the said meeting. He comes to you, his bright accountant, for advice, what would be your answer to him? pls help me, thank you
