Which statement is true? Group of answer choices
Q: Which of the following are differences between a bond and a common stock? (Select all that…
A: Debt markets are markets where you contribute within the institutions or trade substances by the…
Q: When a company retires its own common shares, the company must a.decrease the common share account…
A: Retirement of the company's own shares means the cancelling of original issued shares.
Q: how the zero-coupon rate bond provides return to the investor and gives the advantages to the…
A: A zero coupon bond is a fixed income security which is sold at a deep discount to its face value.…
Q: Which of the following is CORRECT? a. One advantage of operating a business as a corppration is…
A: A bondholder is a holder or the owner of the debt instrument that companies and states usually…
Q: How is preferred stock valued and after-tax Earnings of a corporation ultimately belong to whom?
A: Preferred stock is the form of stock which might have any combination of the features not possessed…
Q: Which of the following statement is incorrect?
A: The retirement of long term debt calls means that the debt represented by the bond are paid by the…
Q: 3. Which of the following securities do not provide tax advantage to the company? A. Bond B. Equity…
A: There are various financial instruments some may provide tax benefit and other may not.
Q: 7. Its buyers become lenders to the company. a. Stocks b. Bonds 8. It is a written contract between…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: 9. The choice of the proper mixture of debt and equity, used to finance a corporation, is also…
A: 9. Capital Structure Decisions It means arranging capital from various sources in order to…
Q: 6. These give the holders the privilege to purchase shares of stocks at a price lower than the…
A:
Q: hich of the following statements is CORRECT? a. Preferred stockholders have a priority over…
A: Preferred stock hoders enjoys certain privileges which make them senior to common stockholders.
Q: Should preference shares be disclosed as ‘equity’ or as ‘debt’?
A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…
Q: Question 6 Which of the following is NOT a right possessed by common stockholders of a corporation?…
A: The common stockholders are considered as the owner of the organization and they have different…
Q: 7. These are distributions of the earnings of the corporation in the form of the corporation's own…
A: Dividend: A portion of company's profits is normally paid to e shareholders as dividends and is…
Q: an incorporator in a corporation. 2. A corporation can be an incorporator in another corporation. 3.…
A: A corporation refers to a separate legal identity of a company from its owners. Note:…
Q: answer all questins with true or false 1. Preference shares of stock may be issued with par or…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want a…
Q: 1 All corporations acquire financing by issuing stock for sale on public stock exchanges.…
A: Stock is financial security issued by corporations for raising permanent capital. Stock represents…
Q: 1) A corporation may choose to use debt financing because a) it has an income tax advantage. b) it…
A: In case of multiple questions, we are allowed to solve only the first question. In case if you want…
Q: In applying the Sec. 318 attribution rules to a stock redemption, the stock of a corporation is only…
A: Sec 318 of US code is related with constructive ownership of stock. Under this section, an…
Q: ompare the after-tax returns for a corporation that invests in preferred stock with a 12% dividend…
A: Dividend is the sharing of earnings by a corporation to its stockholders. When a corporation earns a…
Q: Assume that the return on tax-exempt securities is 0.09 and that tp = 0.3, tg = 0.15, and te = 0.35,…
A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…
Q: Interest on debt incurred to acquire shares in a public corporation is only deductible if the shares…
A: If the money is borrowed to purchase shares, the interest expenses will generally be deductible if…
Q: Select the best term for each definition below.
A: Shareholders’ equity: Shareholders’ equity refers to the right the owner possesses over the…
Q: 10. This refers to the process where the issuer directly sold the bonds only to qualified investors…
A: Issuer :- An issuer is one who issue financial secutities to the public, Goverment, banks, NBFC etc.…
Q: 14-which of the following statements about the characteristics of debt and equity are true? Please…
A: Debt is an amount borrowed from an investor which has a fixed obligation of income, and Equity is an…
Q: Which of the following statements is CORRECT? A The stock of publicly owned companies does not need…
A: Firms can raise financing by issuing shares or by raising funds via debt financing.
Q: Since bonds do not give up ownership in a corp, why not simply take all funding with bonds? - is…
A: 1. Bond is presented in the balance sheet of the company. It is a loan on which a fixed amount of…
Q: S1 The Corporation will always issue all the delinquent shares to the highest bidder which are…
A: A stock becomes delinquent upon failure of the holder to pay the unpaid subscription or balance…
Q: Which of the following is a difference between stocks and bonds? A. Bonds may be issued by…
A: Bonds are the debt and when entities issue bonds then, they are required to pay interest on it.
Q: Why don't corporations pay dividends on shares of treasury stock?
A: Treasury stock refers to the shares that are bought back by the company from the market. These are…
Q: Which statements are true? 1. [S1] Preference shares are considered a hybrid type of financing…
A: Preference shares are those shares which have preferred right on dividend before equity shares while…
Q: How many of the following is/are advantage(s) of issuing bonds to raise capital? (A) Does not…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Which of the following statements regarding an S-corporation is true? Select one: a. It must pay a…
A: S corporation is form of incorporation as a corporation as per IRS requirements. After meeting the…
8.
Which statement is true?
Group of answer choices
a. Preferred stock is similar to corporate bonds because the corporation usually pays the holders of the securities a fixed amount.
b. Preferred stockholders have priority over bondholders when it comes to the payment of
c. Preferred stock is similar to corporate bonds because dividends on preferred stock, like interest on bonds, are a tax-deductible expense to the corporation.
d. Preferred stockholders are considered to be the true owners of corporations.
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- Which of the following are correct statements concerning corporate dividends? a. Dividends are legal liability of a corporation to its shareholders b. Dividends paid by a corporation to another corporation receive preferential tax treatment (minimum 70% exclusion from taxable income) c. Dividends are generally paid to the shareholders before the payment of interests to the bondholders d. Dividends payments are considered tax deductible expense while interest payments are notA corporation can raise money by selling stocks and/or bonds. From an investor's perspective, what is the difference between a bond and stock? O 1. If an investor owns a corporate bond, the investor owns a part of the company. O 2. A corporation guarantees interest payments to a bond investor but does not guarantee dividend payments to stock investor. O 3. A corporation guarantees dividend payments to a stock investor but does not guarantee interest payments to bond investor. O4. Stocks can appreciate in value, bonds do not change value.From the issuing firm's point of view, one advantage of preferred stock over bonds is A) preferred dividends are a deductible expense for tax purposes. B) preferred voting privileges concentrate power in the hands of managers and major shareholders. C) a dividend payment can be skipped without triggering bankruptcy. D) all of the above
- Which characteristic of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? 2. What does the term par value of stock mean? please list credible references for informationFinance A corporation can raise money by selling stocks and/or bonds. From an investor's perspective, what is the difference between a bond and stock? O 1. If an investor owns a corporate bond, the investor owns a part of the company. O 2. A corporation guarantees interest payments to a bond investor but does not guarantee dividend payments to stock investor. O 3. A corporation guarantees dividend payments to a stock investor but does not guarantee interest payments to bond investor. O4. Stocks can appreciate in value, bonds do not change value.8. How is preferred stock valued and after-tax Earnings of a corporation ultimately belong to whom?
- Which of the following statements is CORRECT? a. The preferred stock of a given firm is generally less risky to investors than the same firm's common stock. b. Corporations cannot buy the preferred stocks of other corporations. c. Preferred dividends are not generally cumulative. d. A big advantage of preferred stock is that dividends on preferred stocks are tax deductible by the issuing corporation. e. Preferred stockholders have a priority over bondholders in the event of bankruptcy to the income, but not to the proceeds in a liquidation.Indicate whether the following statements are true or false. If the statementis false, explain why.a. If a firm repurchases its stock in the open market, the shareholders whotender the stock are subject to capital gains taxes.If a 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? 2. Can this amount be treated as a gain, income, or profit for the corporation? Please give the reason for your answer.
- Which of the following are differences between a bond and a common stock? (Select all that apply.) A. A corporation has to pay all bondholders before paying stockholders. B. A bond is a claim on the earnings and assets of a corporation, whereas a common stock promises to make periodic payments for a specified period of time. C. A corporation has to pay all stockholders before paying bondholders. D. A bond is a debt instrument that entitles the owner to receive periodic amounts of money until its maturity date, whereas a common stock represents a share of ownership of the institution that has issued the stock.i. Explain the corporate characteristic termed “no mutual agency” ii. Explain the corporate characteristic termed limited liability. iii. Explain the term outstanding stock. iv. Is it true or false that corporations muse issue common stock, but may or may not decide to issue preferred stock? v. Is it true or false that all forms and classes of stock carry voting rights? vii. Is it true of false that stock sold for amounts in excess of par value results in a gain reported on the income statement?1. An advantage to a corporation of issuing bonds rather than issuing stock or borrowing from a bank include(s) a. All of the below are true b. Interest on bonds is tax deductible, but dividends are notc. Bondholders have no voting rights or ownership of the corporationd. Bank lenders often demand a huge amount of annual information and place onerous restrictions on the business