The payment of dividends is Blank______. Multiple choice question. at the discretion of the stock exchange where firms are listed mandatory for all public firms regardless of whether they make a profit or not mandatory for all public firms making a profits at the discretion of the board of directors of the company.

The payment of dividends is Blank______. Multiple choice question. at the discretion of the stock exchange where firms are listed mandatory for all public firms regardless of whether they make a profit or not mandatory for all public firms making a profits at the discretion of the board of directors of the company.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 13PB: You are a consultant working with various companies that are considering incorporating and listing...

See similar textbooks

Similar questions

You are a consultant working with various companies that are considering incorporating and listing shares on a stock exchange. One of your clients asks you about the various acronyms she has been hearing in conjunction with financial analysis. Explain the following acronyms and how they measure different things but may complement each other: EPS (earnings per share), EBITDA (earnings before interest, taxes, depreciation, and amortization), and NOPAT (net operating profit after taxes).
Unless stated otherwise in the prospectus, which of the following accrue to holders of common stock? Check All That Apply The right to vote on members for the Board of Directors. The right to share proportionally in dividends paid. An ownership stake in the company. The right to receive any back dividends that were missed if the company suspends its dividend and then decides to restart paying dividends. First priority on assets following a liquidation and distribution of the firm's assets.
Which of the following statements is NOT CORRECT? "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares Publicly owned companies have sold shares to ivestors who are not associated with management, and they must register with and report to a regulatory agency su as the SEC When stock in a dlosely held corporation is offered to the public for the first time, the transaction is called "going public," and the market for such stock is called the new issue market It is possible for a firm to go public and yet not raise any additional new capital. O When a corporation's shares are owned by a few individuals who own most of the stock or are part of the firm's management, we say that the firm is "closely, or privately, held
Which of the following is a characteristic of common stock?a. The right to the residual income after creditors have been paidb. Limited liability in the case of the corporation going bankruptc. Voting rights to elect the board of directorsd. The right to maintain a proportionate share of ownership in the firm (when new shares are issued, stockholders have the first right of refusal)e. All of the above
Match each of the following terms with the appropriate definition. A document that gives a designated agent the right to vote a stockholder's shares of stock. The date specified by corporation directors for identifying stockholders to receive dividends. The date on which the directors vote to pay a cash dividend. The ratio of a company's current market value per share to its net income per share. Occurs when a corporation calls in its stock and replaces cach 1. Dividend Yield share with more than one 2. Reverse Stock Split new share; decreases both the market value per share and the par or stated value per share. 3. Convertible Preferred Stock 4. Price-Earnings Ratio Net income less preferred dividends divided by weighted-average 5. Date of Record common shares 6. Proxy outstanding. 7. Stock Split Stock that gives its holders the option to exchange their shares for common shares at a specified rate. 8. Basic Earnings per Share 9. Cumulative Preferred Stock Stock that has a right to be…
Which feature is not applicable to common stock ownership?a. Right to receive dividends before preferred stockshareholders.b. Right to vote on appointment of external auditor.c. Right to receive residual assets of the company shouldit cease operations.d. All of the above are applicable to common stockownership.
Which of the following statements is NOT correct about the rights granted to common stockholders? Group of answer choices a. Stockholders may transfer their right to vote to a second party by means of a proxy. b. Dividends due to common stockholders are cumulative. c. Common stockholders have the right to elect a firm's directors. d. In large, publicly traded firms, managers typically have some stock but their personal holdings are generally insufficient to win voting control.
Which of the following statements is NOT CORRECT? "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the fiem's shares. Publicy owned companies have sold shares to investors who are not associated with management, and they must register with and report to a regulatory agency such as the SEC. When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public," and the market for such stock is called he new issue market. It is possible for a firm to go public and yet not raise any additional new capital When a corporation's shares are owned by a few individuals who own most of the stock or are part of the firm's management, we say that the fim is "closely, or privately, held
The excess of issue price over par of common stock is termed a(n) a. income O b. premium C. discount O d. deficit
Which of the following statements is CORRECT? A The stock of publicly owned companies does not need to be registered with and reported to a regulatory agency such as the SEC. B When a corporation's shares are owned by a few individuals, we say that the firm is publicly traded. C "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares. D When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public, or an IPO," and the market for such stock is called the new issue or IPO market. E If a firm goes public, it will always raise additional new capital for the firm itself.
Which of the following statements are false? (you may choose more than one statement) A The issue of ordinary shares will not dilute ownership of the company B A rights issue will not dilute ownership of the company C A bonus issue is a means of raising finance for the business D A company can decide on the level of dividends they pay out to ordinary shareholders each year
Which of the following statements is NOT CORRECT? (A) Going public establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares (B) Publicly owned companies have sold shares to investors who are not associated with management, and they must register with and report to a regulatory agency such as the SEC. (C) When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public." and the market for such stock is called the new issue market (D) It is possible for a firm to go public and yet not raise any additional new capital (E) When a coporation';s shares are owned by a few individuals who own most of the stock or are part of the firm's management, we say that the firm is "closaly, or privately, held.