The excess of issue price over par of common stock is termed a(n)

Q: The wider the dispersion of returns on a stock, the:

A: Investors evaluate the portfolio or security on the basis of risk profile. The risk profile can be…

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: When preference share is cumulative, preferred dividends not declared in a period are  a. never paid…

A: Answer: When preference share is cumulative, preferred dividends not declared in a period are…

Q: For a price-weighted index, when a lower-price stock is replaced by a higher- price stock, which of…

A: As per this method of price-weighted index, the stock price added by each company according to its…

Q: For a price-weighted index, when a lower-price stock is replaced by a higher-price stock, which of…

A: One common type of stock market index is the price-weighted index, where stocks are weighted based…

Q: Which of the following correctly ranks the costs of debt (rd), preferred stock (rp), retained…

A: Capital structure determines how much funds are raised through different sources of capital. It also…

Q: There is a --- impact of earnings on stock prices O a. Deductive O b. Positive O c. Normative O d.…

A: Earnings, also known as net income or profit, represent the amount of money a company has left over…

Q: What does the additional paid-in capital account represent? a) The difference between the par and…

A: When a company issues fresh shares for a price more than the par value of a share, excess amount is…

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 describes delta? The ratio of the option price to the stock price None of…

A: The simplest form of delta hedging entails an investor purchasing or disposing of options, and then…

Q: Which of the following classes of stockholders receives the highest preference as to the right to…

A: Stockholders' equity is classified into the following two classes. Common stock Preferred Stock

Q: When treasury stock is sold below cost, the Paid-in Capital, Treasury Stock account is debited for…

A: Treasury stock refers to previously issued stock that the issuing business buys back from…

Q: Discuss why options and warrants may be considered potentially dilutive common shares for the…

A:

Q: The date on which we would expect to see the price of a share fall by the value of the dividend is…

A: a. the declaration date - It is the date when the company announces that dividend will be paid on…

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: The greater the volatility of the underlying stock, the higher; lower lower; higher higher; higher…

A: The greater the volatility of the underlying stock, the higher the premiums for both call and put…

Q: If stock is issued above par, what other equity account can be credited?  Choices:  common stock…

A: Paid-in capital is the sum of capital "paid in" by speculators amid common or preferred stock…

Q: Which of the following positions could be associated with the profit diagram belo a.long 80-strike…

A: Options gives opportunity to buy or sell stock on expiration but there is no obligation to do that…

Q: Preferred Dividend formula = Par value * Rate of Dividend * Number of Preferred Stocks.   can u…

A: The preferred dividend formula is used to calculate the amount of dividends that a company must pay…

Q: Describe what is meant by the weighted-average number of common shares.

A: Weighted average shares outstanding refers to the number of shares of a company calculated after…

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: If the stock makes a dividend payment before the expiration date, then the put-call parity relation…

A: Put call parity equation is used to find the value of call or value of put. Put call parity: Spot…

Q: Which of the following statements regarding the dividend discount model f computing stock prices…

A: According to the Gordon’s Model, the market value of the share is equal to the present value of…

Q: Explain realized rate of return on stock

A: Realized Rate of Return on stock gives you the percentage return on holding the stock for a certain…

Q: The Price-Earning ratio (P/E) of stock  A, B, C are 5, 3, 7 respectively. Which one you should buy?

A: A Price-earnings ratio is the relationship between firm's stock price and earnings per share. The…

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.