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- What is the value of Ls stock for volatilities between 0.20 and 0.95? What incentives might the manager of L have if she understands this relationship? What might debtholders do in response?Hi there, could you please check if my answers were correct? Testbank Exercise 136 Indicate the effect of each of the following transactions on total stockholders' equity by placing an "X" in the appropriate column. Increase Decrease No Effect 1. Treasury stock is resold at more than cost. X 2. Operating loss for the period. X 3. Retirement of bonds payable at more than book value. X 4. Declaration of a stock dividend. x 5. Acquisition of machinery for common stock. X 6. Conversion of bonds payable into common stock. X 7. Not declaring a dividend on cumulative preferred stock. x 8. Declaration of cash dividend. X 9. Payment of cash dividend. XWhat is the effect of purchasing treasury stock on a company’s earnings per share and return on equity, respectively? (Enter 1, 2, 3, or 4 that represents the correct answer.) No effect and no effect Decrease and decrease Increase and increase Increase and decrease
- Case Study 1: A common measure of the relative value of a company's stock is the price to earnings ratio... A relatively low PE indicates either a relatively undervalued stock or a company expected to have low or even negative future earnings growth, while a relatively high PE indicates either an over-valued stock or a company expected to have robust future earnings growth. Consider the following companies, for which we want to determine the aggregate PE: Company A B с D PE Ratio 22.50 24.20 20.00 60.00 Find the right statistical tool, then state the reason for using that tool.A small stock dividend a. decreases common stock. b. has no effect on total equity. c. increases Retained Earnings. d. Items a, b, and c are correct.Revaluation surplus of a company will be shown in a. Statement of cash flows b. iIt will be shown only in current liabilities c. It will not be shown anywhere d. Statement of changes in equity Which of the following effect is Correct for the payment of dividend by the company on Irredeemable preference shares? a. Increase Bank balance b. Increase Current liability c. Decrease Current liability d. Increase Retained earnings
- 8. How would total stockholders' equity be effected by the declaration of each of the following? Stock dividend a. No effect b. Decrease c. Decrease d. No effect Stock Split Increase Decrease No effect No effect19. Which of the following statements relating to earnings per share is not true? __________ It is an often-reported measure of the potential return to stockholders. It is a financial measure. It is a cash measure. It is based on the accrual basis of accounting.A company issues stock dividends for several reasons: Select one: a. To reward investors b. To reduce the market price per share of its stock O c. All the options O d. To continue dividends but conserve cash
- 14. return on common stockholders equity 15. earnings per share on common stock 16. price-earnings ratio 17. dividends per share of common stock 18. dividend yield please and i repeat please answer 14-18 i do NOT need help on 1-13 i have those answers already. I have provided all the information. Please help mewhat is the total stockholders' equity? is it the same as total stockholders' deficit? I am looking for the average stockholders' equity to do the Return on Equity formula.When a dividend is declared and paid in stock * Choices; stockholders' equity does not change. total stockholders' equity decreases. the current ratio increases. the amount of working capital decreases.
