Why would a company choose to issue floating-rate as opposed to fixed-rate preferred stock?

Q: What is the difference between cumulative and non-cumulative preferred stock?

A: Preference stocks are ownership stocks with fixed dividends without any voting rights. Dividends are…

Q: If the corporation when formed sets a par value for its shares low and issue common   stock for a…

A: Par value of share is the face value that is fixed by the company but the shares may be sold at a…

Q: Which of the following is not a very common feature of preferred stock? a. Voting rights b.The…

A: One of the sources of raising the funds and meeting the financial requirements is to issue the…

Q: Why might an investor-owned firm choose to issue different classes of common stock?

A: An investor owned firm issues different classes of common stock mainly due to the difference in…

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

A: Concept:

Q: How does preferred stock differ from common stock?

A: Capital Stock of CorporationCapital stock is issued by the corporation to raise funds from the…

Q: Why is preferred stock “preferred”?

A: Capital stock is stock that includes common stock and preferred stock and is authorized and issued…

Q: In what ways is preferred stock like long-term debt? In what ways is it like equity?

A: Preferred stocks are issued to raise capital for the firm. Other forms of fund raising methods are…

Q: what are the differences among common stocks preferred stocks and debt securities

A: A business needs finance to run its business and this can be raised by various means such as Common…

Q: What are the advantages and disadvantages of preferred stock from the perspectiveof its issuer?

A: Answer: From the perspective of the issuing entity, the main benefit of preferred stock issuance…

Q: What is meant by a preferred stock?

A: Stocks refer to the concept which is defined as the security that represents the ownership of the…

Q: What is the difference between stock split and stock dividends.

A:

Q: What is the difference between cumulative and noncumulative preferred stock?

A: Cumulative preference shares:   Under a cumulative preference share, if the dividend payments have…

Q: What percentage of stock trading is done off-exchange? Onregistered exchanges?

A: The method of exchanging securities for businesses not registered in a structured exchange such as…

Q: available-to-sell stock versus a held-to-maturity stock

A: Available-to-sell stock is a type of security that can be bought and sold before maturity.…

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: Why do companies reacquire their own shares of stock?

A: Ans. For many reasons companies reacquire their own shares of stock. Some of them are discussed…

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

A: Stock split: It is the way of reducing the value of a share by split one share into multiple shares.…

Q: What is the difference between Par Value of shares and Issue price of shares?

A: Solution: Par value is the minimum fixed price which a company can demand for its share issue.…

Q: What factors should a stock analyst think about indetermining the value of a share of stock?

A: Shares are financial instruments that give the holders the status of owners. They enjoy the right to…

Q: Discuss the conceptual basis for accounting for a share buyback as treasury stock.

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…

Q: What is the firm’s cost of preferred stock?

A: Introduction: Preferred stock is one of two types of securities sold by any company, and the other…

Q: what are factors that can influence the price of a stock?

A: Stocks are the company’s securities issued by the companies to raise the funds. Prices of stock…

Q: What are the advantages and disadvantages of preferred stock tothe issuer?

A: Preference shares, which are issued by companies seeking to raise capital, combine the…

Q: How does cumulative preferred stock differ from noncumulative preferred stock?

A:

Q: stock markets protect a firms shares from liquidity? true or false

A: Stock markets are said to be amongst the foremost vital components of a free-market economy where…

Q: What is treasury stock? Why would a company repurchase its own stock? How might they dispose of the…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: Define Restricted Stock Awards.

A:

Q: What is restricted stock? 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: 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: Which of the following is an appropriate presentation of treasury stock? O As a marketable security…

A: Treasury stock is the amount of shares repurchased by the company.

Q: What is the difference between a stock dividend and a stock split?

A: Stock: It can be defined as the unit that reflects the equity stake or ownership interest in a…

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: 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: How does market cap effect the stock market?

A: Market capitalization is given by the formula: Market capitalization = Price per share x No. of…

Q: How does pe effect the stock market

A: PE reflects the price to earning ratio. It is the ratio of current market price to the earning for…

Q: What are the differences of the preferred stock features: cumulative dividends, participating,…

A: Preferred stock is a type of company stock that differs from ordinary stock in that it has special…

Q: What is par value? Select one: a. The price at which a company's stock is sold b. The dollar amount…

A: To arrange the funds for the firm's requirement, firms issue various securities in the market and…

Q: Who are the major purchasers of nonconvertible preferred stock? Why?

A: Mostly, the buyers of preferred stocks are institutional investors because they get an incentive…

Q: What does it mean to state that a company’s book value per share of common Q stock is less than its…

A: A share of a company represents the ownership proportion in the company. A holder of common stock is…