Which of the following accounts represents an equity account? Question 9 options: Ordinary actions All of the above Share premium RND Preferential shares

Q: Which of the following factors affects the price of a call option on a stock? The exercise…

A: Call option gives opportunity to buy stock on expiration but there is no obligation to do that…

Q: For an investor’s perspective, preference shareholders hold _______risk than common shareholders.…

A: The capital raised through the issue of preference shares is called preference capital. These…

Q: Which of the following is not a primary function of Money? a. All the options are correct b.…

A: Money is any item or verifiable record that is generally accepted as payment for goods and services

Q: SHARE B SHARE B P (A) RA (%() P (B) RB (%) 0.05 10 0.05 12 0.25 15 0.25 18 0.40 22 0.40 28 0.25 25…

A: A combination of the different types of funds and securities for the investment is term as the…

Q: What is the difference between mutual funds' class A, B, and C shares? O A. The timing and amount of…

A: Mutual funds are an investment vehicle where pool of money is collected from several investors and…

Q: What is meant by preference shares? Briefly discuss any four advantages of preference shares.

A: Preference shares are a type of hybrid securities which have characteristics of both bonds and…

Q: true or false

A: Public Offering A public offering is when the issuer of the company offers securities like bonds or…

Q: Question 1 Consider the three stocks in the following table. P, represents price at time t, and Q,…

A: The rate of return refers to the minimum return earned by the investor while investing in the stocks…

Q: Theory believes that dividend or capital gains has an impact on the price of the stock Select the…

A: Dividend relevance theory:- This theory says that the dividend or capital gain paid by the firms is…

Q: Which type of security does it refer to? “First pay one times the Original Purchase on each share of…

A: This pertains to preferred stock. Most of the VC (venture capital) transactions in USA is made…

Q: How is basic EPS different from diluted EPS? When calculating diluted EPS, how does the treasury…

A: EPS stands for earning per share that is used to measure the profitability of a company. It is…

Q: Two examples of convertible securities would be preferred stock and common stock. Group of answer…

A: Convertible securities are securities which can be converted into common stock after completion of…

Q: Which is not true of preference shares? *       A. Payment of dividends is mandatory if cumulative.…

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

Q: Under a Rights Issue, once the shares h been issued the NEW Market price wou be. . Above the Subs…

A: Through Rights issue, company raises capital from Shareholders by issuing shares at a discount. As…

Q: Quéstion 10 Preferred stockholders have the following rights EXCEPT: O A. the priority over common…

A:

Q: Question 1: In the table below you are given the details of the put and call options on the shares…

A: Call option holder A call option gives its holders the right to purchase the shares at the exercise…

Q: The following is not an example of an equity instrument:     Preferred stock     Stock Warrant…

A: Equity instruments are documents that act as proof of ownership rights, such as share certificates,…

Q: Considering the same amount of reserves in the equity, which of the following kinds of preference…

A: Company means a form of business where the share holder invest money in business in form of shares…

Q: Which of the following are considered to be speculative investments? O Platinum O Baa3 rated…

A: Investment can of of speculative investment and investment grade investment

Q: G Revisit Choose the best option mestion #33 O Ordinary share capital. mich of the following does…

A: A capital reserve is an account in the equity section of the balance sheet that can be used for…

Q: 7 Since preferred stock dividends are fixed, valuing preferred stock is roughly equivalent to…

A: Preference shareholders are the ones having the preference share of the company, they get some…

Q: What information does the market price for a share of common equity give us? O A. it provides the…

A: Shares of common stock or equity are traded in the market for listed companies. Prices of these…

Q: A trader enters into a butterfly spread using the following calls. • Mar 4 $105 C - Price: $12.20…

A: March -4, $105 Call is trading at $12.20 March -4, $110 Call is trading at $9.3 March -4, $115 Call…

Q: Preferred stock is a hybrid Most preferred dividends are similar to  _______ on bonds Answer 1…

A: Preferred stock is a hybrid instrument which gives the holders certain privileges over common…

Q: inance question Name 2 auto sector stocks that are part of nifty.

A: Nifty is stock market index of India which consists of 50 stocks of various difference sector.

Q: hich of the following graphs (next page) represents the Profit and Loss  profile for the Seller of a…

A: Put options gives you the right to sell the stock on the expiration by payment of very small premium…

Q: It is a financial market where participants can issue and trade stocks (i.e. shares) is known as…

A: i) Stock Market is the place where shares are issued by companies and are traded  ii) Bond Market is…

Q: Question 11 Strike prices of options are adjusted for but not for A stock price movements; stock…

A: Options are referred as the derivative based financial instruments which indicates the value of an…

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

A: A floating interest rate refers to a variable interest rate that developments over the length of the…

Q: Which of the following best describe a speculative stock? high risk, low volatility, start-ups high…

A: Speculative stocks are those where the price of stock changes too frequently and are quite volatile.

Q: 5. How do you call a stock that investors buy for cash dividends?

A: First let us define the terms one by one.  Growth stocks are stocks that don't pay a dividend. They…

Q: AA8 The adjusted trial balance of ZZZ Corp. on December 31, 2021 includes the following account…

A: Preference shareholders enjoy the preference of capital redemption in the event of liquidation of…

Q: A new stock issuance by a specific firm that already has stock outstanding is referred to as a(n):…

A: The question is asking for the term used to describe the situation when a company that already has…

Q: Part A. Assuming a 1 round funding scenario, if an investor invests $5,000,000 at the beginning of…

A: Given data company value at the end of three years =$80,000,000.  rate of return= 20% investor…

Q: q2a- List and compare three different ways of issuing shares in the primary market. (6 mark worth…

A: The primary market is a part of the capital market. It enables the government, companies, and other…

Q: a. Consider a portfolio, made up by selling short $10,000 of Contravent stocks and buying $10,000 of…

A: Information Provided: Shorting Contravent stock = $10,000 Buying Sensor stock = $10,000 Buying…

Q: A reduction of par or stated value of stock results from a Group of answer choices liquidating…

A: The dividend is the return to the shareholders for making an investment in the company. It is…

Q: According to the Capital Asset Pricing Model (CAPM), underpriced securities: A above the SML under…

A: CAPM is a capital asset pricing model and is used to find the required return on a stock. The…

Q: All else equal, a higher required rate of return would reduce the price of: I. Corporate bonds II.…

A: Required rate of return is the rate of return that an investor expects as a consideration for…

Q: how to calculate perpetual preferred stock

A: Perpetual preferred stock is one which continues to give or distribute dividend for an infinite…

Q: 16. The market where the shares are bought and sold, is known as __________. a. Money market b. None…

A: A market is a physical or virtual space where you can buy or sell things like grains, food items,…

Q: Ordinary shares and Preference Shares

A: Ordinary shares and preference shares are different classifications of shares issued by a…

Q: Option 1 O Option 2

A: Treasury shares are those shares which is bought back by the company just to reduce the share…

Q: Which of the following is true? O A call on a stock plus a stock the same as a put O Along call is…

A: Several statements have been given about positions in call and put. We have to find the correct one.

Q: Treasury shares reduce the number of shares ________. Group of answer choices issued authorized…

A: The objective of the question is to identify the correct option that describes the impact of…

Q: Which of the following is true? Select one: a. None of the options. b. Treasury shares must be sold…

A: The treasures shares are the shares which are repurchased by the company.

Q: If a preferred stock issue has a conversion feature, the stock can be converted into _____.   Group…

A: The stock is of two types ordinary or preferred. The ordinary stock carries the voting right but the…