e following statements are correct regarding dividends component in the purchase price of shares? (i)  The fair value of a share purchased cum-dividend is the quoted price of the share on the stock market. (ii)  The fair value of a share purchased cum-dividend is the quoted price of the share on the stock market less dividend portion in the share price (iii)  The fair value of a share purchased ex-dividend is the quoted price on the stock market. (iv)  The dividend component has no influence in the accounting treatment of the investment in the shares   Select one: a. (ii) and (iii) only

Q: Preference share that is given a right to share with the ordinary share in dividends in excess of a…

A: The preference shareholders gets the right to receive the dividend before other shareholders.

Q: why does the value of a share of stock depend on dividends?

A: Dividend on stocks: Dividend is the proportion of profit that the company distributes among its…

Q: True or False, pls explain why 7) Earnings per share will decline in a stock repurchase transaction…

A: Introduction: Shares repurchase: Initially shares are issued to public. After some time the shares…

Q: Share buybacks recorded with Treasury stock method never increase retained earnings or net income. O…

A: Treasury stocks are the stocks which have been repurchased by the company

Q: Under the cost method, the journal entry to record the repurchase of a treasury share for more than…

A: Shares mean the small portion of ownership that is issued by the company. When the investor's…

Q: When accounting for small share dividend, which of the following will be use in recording such…

A: The share dividend is the dividend provided to the shareholders in the form of shares.

Q: What is the difference between common stock, preferred stock, and treasury stock?

A: The company can raise money from the investors by issuing the common stock or preference stock.…

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: Every time a share of stock is sold on the stock market, the issuing company receives a portion of…

A: Stock market transactions :Primary market: This is where companies issue new shares for the first…

Q: When treasury stock is purchased for more par value of the stock and the cost method is used to…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Which of the following is not a type of dilution? Select one: a. dilution of percentage ownership…

A: Dilution : Dilution is that the reduction of a shareholder's ownership percentage that's caused by…

Q: If shares have been sold above the nominal value what does this mean and why?

A: Nominal value is the par value or face value of share which is assigned to the share and at which…

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

A:

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: How is the realised dollar return from investing in a share calculated? Select one: a. Dividends…

A: Shares are the proportions or units of the capital of a corporation that the corporation issue in…

Q: ming Kingsla Motors was on the stock exchange, why might it contemplate a share split if its sharer…

A: The companies which are listed on the market try increase the value of shares in the market and they…

Q: Which of the following methods of valuing shares will be most appropriate for a prospective investor…

A: To acquire another firm, the company has to pay purchase consideration to the investors of the…

Q: What is the price at which the stock of a public company trades on the stock market referred to as?…

A: The price at which the stock of a public company trades on the stock market is referred to as its…

Q: While the discounted dividend model values a company’s stock based on its dividends, the corporate…

A: The model that evaluates a firm based on its dividends payout to the investors is known as the…

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

A: Stock split is an events that increase the outstanding shares and reduce the stated par value. For…

Q: What is meant by the dividend yield on a common stock investment?

A: Not all the tools of fundamental analysis work for every investor on every stock.  For dividend…

Q: Stock appreciation right would normally be settled through

A: Stock appreciation right is the payment made to the workers of a company in respect of appreciation…

Q: Why is the ex-dividend date important to stockholders? If a stock is sold on the ex–dividend date,…

A: The ex-dividend date is important to stockholders as it is the date on/after which a new buyer of…

Q: How does the value of a share of stock relate to dividends ?

A: Shares of stocks are the securities issued by the companies to arrange the funds. Companies pay…

Q: The formula in common stock valuation does not include

A: Common stock valuation: Common stock valuation is also called as a stock valuation which is used to…

Q: Basic earnings per share will serve as a guide to investors as to the attractiveness of ordinary…

A: solution Basic earning per share                 Basic earning per share is the earning generated…

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: What is the purpose of a stock dividend or stock split? How does a stock split impact a company's…

A: A stock dividend is a dividend payment that is made in shares to its shareholders instead of cash…

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: How do I calculate the net abount of stock issued when the firm pays X amount of dollars in…

A: Company give dividends out of net income to shareholders to reward shareholders So that they…

Q: 12. Which of the following statements is true? a. The holding period for a stock received as a…

A: The holding period for property is the length of time that a taxpayer has owned a particular…

Q: True or False :   Passed dividends on cumulative preferred stock are recorded as a liability.

A: Liability is an obligation which is reported on the balance sheet of the entity. It is to be…

Q: When calculating book value per share of common stock, do you also subtract additional paid in…

A: Preferred stock refers to the type of ownership issued by a corporation which gives them a…

Q: What is Stockholder Equity? Include Retained Earnings and Common Stock explanations.

A: Stockholder Equity: The person holding the equity shares of the company is known as the equity…

Q: TRUE OR FALSE.  iF FALSE explain why A share dividend will cause an increase in total share…

A: The dividend is a payment made by the company to its stockholders.