the best Cost of servicing an equity does not include O interest iSsue of bonus s O cash dividend O script dividend

Q: Which one of the following statements related to capital gains is correct? Multiple Choice O O O O…

A: The capital gain of an investment is the percentage change in the value of the investment, whether…

Q: Why is the return associated with common stock referred to as a residual claim? Contrast this kind…

A: Common stock holders are the owners of the business. Profits earned by the company will be the…

Q: Is it because: a. The capital gain will be different because the dividend did not change. or…

A: Capital gain can be calculated s follows: Capital gain=(Sale price - Cost price)Cost price* 100

Q: Under IFRS, the amount of capital received in excess of par value would be credited to: a.…

A:

Q: Equity investors expect to be compensated for two things

A: In financial terms, risk can be defined as the possibility that the real profits from an outcome or…

Q: Several regulations limit dividend payments. Which of the following do not limit dividend payments?…

A: Several regulations limit dividend payments.  Including

Q: A market in which all financial assets can be sold to someone other than the original issuer is…

A: A primary market is a market where securities are first issued by its original issuer/ creator. Once…

Q: What about the recapitalization part in the question? Does that not effect total equity

A: Before recapitalization,the unlevered value of the firm is $500,000,000 or $500 million. Unlevered…

Q: None

A: With margin trading, traders can leverage their positions beyond their initial capital by borrowing…

Q: Liquidity

A: A firm’s liquidity position plays a very important role in ensuring its survival in the market.

Q: What determines if a potentially dilutive security is dilutive or anti-dilutive? a. the share price…

A: Earning per share means the profit earned after taxes per share outstanding. Diluted earning per…

Q: According to the trade-off theory, the decision on capital structure entails a trade-off between the…

A: Capital structure means the way of getting finance from different sources.

Q: Identify the account to be decreased when there is a dividend declaration.

A: Solution:- Identification of the account to be decreased when there is a dividend declaration as…

Q: Which of the following statements is CORRECT? Profit have no effect on capital Profit will…

A: Profit means the difference between the revenue from operation and total cost . Capital means the…

Q: Commodities of broker-traders are measured at *

A: As per IAS 2 Inventories, this standard has some exceptions. One such exception is commodity…

Q: 26. Real interest rate and real cash flows do not include A. equity effects B. debt effects C.…

A: Interest rate refers to the rate at which one party agrees to lend and the other party agrees to…

Q: ere are two concepts in respect of working capital Select one: a. None of the options b. Cost of…

A: Working capital represents the variance between all the current assets and current liabilities of a…

Q: Martha earns $2000 in the first year, and $3000 in the second year. If each of these salaries are…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines,  only one question must…

Q: 1. How are passive investments accounted for under ASPE? a) Cost of amortized cost. b) FVTPL…

A:

Q: Net profit is: O Not affect Deducted the capital O Add to Capital O Equal the capital O O O

A: Net Profit is the profit for the company, which is earned by the owner and therefore it is added…

Q: The additional return earned by holding a commodity that is in short supply or a nonpecuniary gain…

A: Answer- The Convenience Yield - A premium that is earned by people who hold a physical commodity.…

Q: Which of the following is not an undistributable reserve?    A. Share premium account     B.…

A: Undistributable reserve means reserves which are not available for distribution to share holders.…

Q: Choose the correct answer:  Equity security acquired for non-trading and the shares are not enough…

A: Solution Concept When there is no significant influence then the investment is financial asset Debt…

Q: Several regulations limit dividend payments. Which of the following do not limit dividend payments?…

A: the following do not limit dividend payments   a. Liability restriction

Q: 1 c) ' low dividend payout is desirable.' Justify.

A: A company pays dividends to its shareholders.   Some company pays dividend on a regular basis while…

Q: The most popular method that firms use to calculate the cost of equity is ________.  Group of answer…

A: The question is based on calculation of cost of equity. Cost of Equity for a firm is the expected…

Q: Which of the following ratios does not use net income in its calculation?   Multiple Choice…

A: (i) Net profit margin:The formula for net profit margin is:Thus, 'Net profit margin' is an incorrect…

Q: Why is there a cost for retained earnings? Group of answer choices Earnings can be reinvested or…

A: Retained earnings is the amount of net income which remains after the distribution of dividends.

Q: All else equal, as market interest rates fall, the present value of a future cash flow. the…

A: Present value is the equivalent today based on time value of money of the future cash flow that is…

Q: How is book value per share calculated? Explain why book valuesoften deviate from market values.

A: Book value per share is overall value of company’s assets on its balance sheet. It means the value…

Q: The return payable on equity is called Select one: a. Brokerage b. Interest c. None of the options…

A: The term "equity" is a financial term that is a part of a capital structure of a corporation. It…

Q: What is reflected in the additional paid-in capital account? a. none of the above b. Whichever is…

A: additional paid-in capital account is shown in liabilities  section of  balance sheet  under…

Q: oes cost

A: Cost of capital : The required return on capital, especially as the expense of developing a new…

Q: Analyze the truth of this statement: Under the cost method of accounting for investments, a…

A: Cost Method of Accounting for Investments: When it comes to recognizing particular investments in a…

Q: The appropriate benchmark for the return on equity is: A)the weighted average cost of capital.…

A: Total earning of the firm that is held in the hands of shareholders of the company.

Q: Gross profit margin is a better measure of profitability than return on equity (ROE).  Select one:…

A: Gross profit margin is the ratio of gross profit divided by the sales revenue. Return on equity is…

Q: Statement I. Book value per share is tantamount to earnings per share Statement II. Dividends…

A: Book value per share is ratio of shareholders equity less preferred equity to number of shares…

Q: An important difference between interest and dividends is that:

A: Capital structure defines the proportion or combination of various sources of capital financing such…

Q: Q.Regarding the concept of opportunity cost, one affirmation is false. Which one is it? a. is not…

A: Answer: a) Regarding the concept of opportunity cost, one affirmation is false. The false statement…

Q: Why does the equity method record dividends from an investee as a reduction in the investment…

A: The carrying amount or the book value of the investment is reduced in order to record the dividend…

Q: Define each of the following terms:a. Target payout ratio; optimal dividend policyb. Dividend…

A: Target payout ratio; optimal dividend policy: A target payout ratio is a percentage of a company's…

Q: t say all answers above are incorrect, i need the yield on the debt percentage plz and thank u

A: The original solution that you have with you is incorrect. It's little unfortunate, but the fact is…

Q: How does the fair value model differ from the revaluation model?

A: The difference between fair value and revaluation method arises when there is gain in the value of…

Q: everage is gained when which of the following exists? O Return on assets is greater than the…

A: Leverage is the borrowing from the market and there is interest to be paid on the debt and leverage…