Elaine, James, and Jeremy form Forest Corporation by transferring the following items to the corporation: Items transferred Basis Fair Market Value Number of Shares Issued From Elaine: Cash Equipment $60,000 30,000 $60,000 340,000 200 shares From James: Land 100 000 540.000 200 shares

Q: Why might a stock dividend or a stock split be of limited value to an investor? Please explain your…

A: Stock dividend is dividend paying to investors in kind. It is adding value to the shares of the…

Q: Why would a corporation have multiple stock share classes?  What are your thoughts?

A: Multiple stock share class means division of shares into different classes  based on : i) Voting…

Q: When can shares be Forfeited?

A: Shares are issued by the company to the public for ownership in the company The shares have an…

Q: If you were a stockholder which type of stock would you prefer? Why?

A: The company issues two types of stock i.e. Common stock and Preference stock. Common shareholders…

Q: Should a corporation issue common stock or preferred stock and why?

A: Few companies offer both preferred and common shares. Most companies, on the other hand, only issue…

Q: Why might an investor-owned firm choose to issue different classes of common stock?

A: An investor owned firm issues different classes of common stock mainly due to the difference in…

Q: How is it possible for an employee stock option to be valuable even if the firm’s stock price fails…

A: Employee stock option is an instrument granted to the employees of the company (mostly to the…

Q: What is a stock split.  How does shareholder's equity change after a stock split?

A: Shareholder’s equity: It is the owner’s share in the business after paying off all the liabilities…

Q: How do you determine if a stock is over-valued? What does that mean? If a willing buyer and a…

A: Stock is said to be over-valued when the market price is higher than the intrinsic value of the…

Q: Why do some large corporations forgo dividends?

A: Dividend refers to a corporate income that organizations give to their investors. They can be as…

Q: Why do corporations issue stock dividends?

A: Stock dividend refers to those dividend which is paid by the business organization to their…

Q: hat are 2 differences between common stock and preferred stock? explain your selections

A: A company’s capital structure involves different kinds of stocks like preferred stock, common stock,…

Q: Does a company benefit when an owner of the company's stock sells these shares to another…

A: The dynamics of stock ownership within a company play a pivotal role in its financial landscape.…

Q: What is founders’ shares?

A: Founders shares: Founders shares is the shares released to the originators of a public corporation…

Q: What is ESOP, employee stock ownership plan?

A: Introduction: ESOP plans are intended at developing the performance of the corporation and uprising…

Q: Define shareholder's equity.

A: Financial accounting is the process of recording, summarizing, and reporting all the transactions in…

Q: What are the tools and measures that objectively measure the level of emotions among individual…

A: Individual investors are usually those who have a limited amount of investment. These investors…

Q: What are the similarities and differences in preferred stock and debt? When would you use either or…

A: A company's capital structure is the combination of several funding sources, including debt, stock,…

Q: When purchasing shares is it preferrable to purchase in anticipation of appreciation or of…

A: When it comes to investing in stocks, there is no one-size-fits-all approach that will work for…

Q: Write down what are the disadvantages of shareholders equity?

A: Equity is one of the common sources to raise finance. Whenever a company requires finance it can…

Q: What are the rights of preferred shares?

A: Two kinds of shares may be issued. 1 ) Preference shares 2 ) Equity shares.