2. If no dividends are in arrears at the current date, what is the book value per share
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- of stion According to MM Case II, if the expected return on assets decreases, what happens to the expected return on equity? Select one: Oa increases O b. remains constant Oc decreases O d. depends on the firm's capital structure Time leWhich one of the following methods is not derived from the principle that the value of a stock is the present vaiue of future dividends. O Discounted cash flow method O Discounted dividend method O Abnormal earnings O Price multiple method O Abnormal earnings growthWhich of the following best describes what investors in shares seek compensation for? The risk-free rate of return plus time value of money OA. O B. The loss of interest on a building society account plus the dividend yield on shares Inflation and risk only OC Sacrifice of immediate use of cash otherwise available for consumption, inflation and risk OD.
- What are dividends? Do all stocks pay dividends?When treasury stock is purchased for cash at more than its par value, what is the effect on total shareholders’ equity under each of the following methods?Earnings per share is a profitability ratio measuring how much a furm earns per share of common stock outstanding. True False
- True or False: When stock is issued for more than its par value, the excess is considered to be an expense and should be reported on the income statement. Select one: O True False4. When preference share is cumulative, preferred dividends not declared in a period are a. called dividends in arrears b. Distribution of earnings c. never paid d. considered a liabilityWhat can you expect to be different on the announcement date AND after the ex-dividend date when a stock price of a certain company drops after it declares dividends?
- of stion According to MM Case II, if the expected return on assets decreases, what happens to the expected return on equity? Select one: Oa increases O b. remains constant Oc decreases O d. depends on the firm's capital structure Time leWhat is reflected in the additional paid-in capital account?Required to answer. Single choice. a. Whichever is higher of (1) the difference between the market price and the par value when the stock was issued and (2) the difference between the market price and the par value when the stock was reacquired b. Whichever is lower of (1) the difference between the market price and the par value when the stock was issued and (2) the difference between the market price and the par value when the stock was reacquired c. The difference between the market price and the par value when the stock was reacquired d. None of the above e. The difference between the market price and the par value when the stock was issued.hh.3