Reasons for issuing Preferred Stock
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Reasons for issuing
a. To raise funds without giving up control
b. To boost the return for common
shareholders
c. To reduce stock dividends/splits
d. All of the above
e. None of the above
f. Only a above
g. Only b above
h. Only a and b above
Explain why...
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- Mf4. All of the following are advantages of a stock dividend distribution to shareholders on account as of ex-dividend date except? a. preserves cash balances of the firm to be used for other investment opportunities b. decrease in share price may attract new investors to raise additional capital c. bonus share distribution dilutes the share price d. not treated as a taxable event for investors and shareholders until sold e. none of the aboveQuestion-based on, "Distributed to preferred stockholders". I have tried it but no correct yet. Any help would be appreciated.The disposition effect: a. Is the tendency of stock investors to sell their winning stocks and hold onto their losing stocks b. Is consistent with regret avoidance behaviour c. Is a consequence of investors’ preference for lottery-type stocks d. (a) & (b) e. (a), (b) & (c)
- Managers of firms may consider a stock repurchase when they believe their stock is ____ by the market, or a offering when they believe their stock is by the market. undervalued; undervalued O overvalued; overvalued O undervalued; overvalued O overvalued; undervalued O none of the above 2255Give typing answer with explanation and conclusion Preferred equity is stock with dividend __ over __ stock, normally with a __ dividend rate, and sometimes __ voting rights. Word bank: common without priority with insignificance variable fixed regular15. Why do investors invest in stocks? i. Wide range of choices ii. Easy to monitor iii. high return without risk iv. Managed by professional managers A. 1,i and ii B. I,iii and iv C. I, ii and iv D. All of the above
- Explain why the following statement is wrong: “The stock price is equal to the value of equity, divided by shares outstanding. Therefore, companies should avoid issuing equity because the number of shares outstanding goes up and thus the stock price would decrease."Po.26. Preferred stock is listed first on a balance sheet because of its dividend and liquidation preferences over common stock. O True O FalseWhich of the following is true? None of the others A call on a stock plus a stock the same as a put A long call is the same as a short put A short call is the same as a long put
- Which of the following transactions will increase thereturn on equity?a. Declare and issue a stock dividend.b. Split the stock 2-for-1.c. Repurchase the company’s stock.d. None of the above.A Moving to another question will save this response. Quèstion 11 The appropriate section in the statement of cash flows for reporting conversion of preferred stock into common stock is: O A. Operating activities. O B. Financing activities. OC Investing activities. O D. Not reported on the statement of cash flows. hpFlexsteel is giving out a large stock dividend. This would: A. Results in a transfer of retained earnings to the common stock account B. Reduces the par value per share by the percentage of the additional shares issued. C. Is accounted for in exactly the same manner as a stock split D. Results in a transfer of retained earnings to common stock and additional paid in capital