CHOICES A. Only Statement I is correct B. Only Statement II is false C. Statements II and III are false D. Only Statement III is false E. All statements are correct On Long-term Debt, Equity and Capital Structure* Statement I: Cumulative preferred stock means that if dividends are not paid in a particular year, they must be paid in a later year before any distributions are given to common stockholders. Statement II: Preferred dividends are based on the total par value of the outstanding shares. Statement III: The maximum amount of shares the company can issue as per the corporate charter are the authorized shares.

CHOICES A. Only Statement I is correct B. Only Statement II is false C. Statements II and III are false D. Only Statement III is false E. All statements are correct On Long-term Debt, Equity and Capital Structure* Statement I: Cumulative preferred stock means that if dividends are not paid in a particular year, they must be paid in a later year before any distributions are given to common stockholders. Statement II: Preferred dividends are based on the total par value of the outstanding shares. Statement III: The maximum amount of shares the company can issue as per the corporate charter are the authorized shares.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Suppose a stock had an initial price of $84 per share, paid a dividend of $1.50 per share during the year, and had an ending share price of $71.50. a. Compute the percentage total return. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What was the capital gains yield? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
The par value of a stock * O is legally significant. O reflects the most recent market price. is selected by the SEC. is indicative of the worth of the stock.
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Treasury stock should be reported Group of answer choices in the Investments and Funds section of the balance sheet. as a deduction from total stockholders’ equity on the balance sheet. as a current asset only if it will be sold within the next year or the operating cycle, whichever is longer. as a current asset only if it will be sold within the next year or the operating cycle, whichever is shorter.
q7- Which of the following statements is true? Select one: a. Trailing P/E is based on the current share price and forward P/E is based on next year's forecast share price. b. Trailing P/E is based on last year's share price and forward P/E is based on the current share price. c. Both trailing and forward P/E are based on the current share price. d. Trailing P/E is based on last year's share price and forward P/E is based on next year's forecast share price. Clear my choice
What does it mean when preferred stock has a cumulative feature? A.A dividend must be paid to the preferred stockholders each year. B. A dividend cannot be paid to the common stockholders. C. If dividends were not paid to preferred stockholders in previous years, these dividends must be paid before any dividends are paid to the common stockholders. D. The stockholders have the right to share in extra dividends. Please explain why the option is correct and remaining incorrect in detail explain each and every option in detail with explanation
Suppose a stock had an initial price of $93 per share, paid a dividend of $2.40 per share during the year, and had an ending share price of $76.00. a. Compute the percentage total return. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What was the capital gains yield? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. b. Dividend yield Percentage total return C. Capital gains yield % % %
Diluted earnings per share shows dilution resulting from additional shares that may be issued for stock options or bonds that may be converted to shares of common stock in the future. True False
The par value of a stock reflects the most recent market price. is immaterial in the majority of cases. O is selected by the SEC. O is indicative of the worth of the stock.
Which of the following results in increasing basic earnings per share? Select one: a. Paying more than carrying value to retire outstanding bonds. b. Issuing cumulative preferred stock. c. Repurchase of common shares. d. Issuing a 2:1 stock split. e. All of these increase basic earnings per share.
Stockholders' equity consists of which of the following? Multiple Choice Paid-in (or contributed) capital and retained earnings. Retained earnings and cash. Long-term assets. Paid-in (or contributed) capital and par value. Premiums and discounts. k
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