ECON308_1030

1. Choose the best definition for a Stock? A. Being a creditor to a company B. Robin Hood C. Ownership shares of a company D. Voting shares in a company E. Ownership shares of a public company   2. When investing in stocks, there are two ways in which you can have a positive return. What are the components of this return called? A. Dividends and Capital Loss B. Robin Hood C. Coupon and Capital Gains D. Coupon and Capital Loss E. Dividends and Capital Gains

The category of equity that tracks the events relating to stockholder transactions is known as: Group of answer choices Retained Earnings Treasury Stock Paid-In Capital Awesome Category

When a company decides to issue capital on the stock market what is the process called? (a) An Initial Public Offering (b) A Rights Issue (c) A Bond Issue (d) An Investment Trust

In Business Finance, we observe a shareholder's required return on a common stock investment because O it is used to predict the cashflows from a capital expansion O it is inversely related to the same firm's bond price O it is an estimate of the cost of equity funding for a corporation O it is the cost of borrowing for the firm K

What is a firm’s cost of capital? Include discussions about debt, preferred stock, common stock and retained earnings. Keep in mind that the cost of capital is rate of return required by investors for a firm’s securities. When would you use debt, preferred stock, common stock or retained earnings?

When a company pays interest on preferred stock, that activity is usually classified as: a. operating b. financing c. investing

Why do people trade stocks? Your answer should relate to company’s stock value.

Answer the following: Is it true or false that corporations muse issue common stock, but may or may not decide to issue preferred stock? Is it true or false that all forms and classes of stock carry voting rights? Is it true of false that stock sold for amounts in excess of par value results in a gain reported on the income statement?

What is the purpose of a stock dividend or stock split? How does a stock split impact a company's financial statements? How does a stock split impact a stockholders' individual investment?What is a reverse stock split?