Value of the shares

Q: What are the sources of gains for bondholders Interest payments Dividends Stock split Capital gains

A: Bondholders An investor or the owner of debt instruments, which are frequently issued by…

Q: In preparing a statment of cash flows a conversion of bonds in to ordinary shares be reported in

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Define cost of common stock

A: Cost of equity: It is the return a firm ought to decide in case investment satisfies the criteria of…

Q: Define Issuance of New Shares.

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

Q: How do icalculate the retained earnings and dividened payable?

A: When there is a profit in a financial year, the profit is transferred from the income statement to…

Q: issue of shares for cash

A: Solution: Cash receipt journal is used to record all type of cash receipts by a buisness.

Q: How does preferred stock differ from common stock?

A: Capital Stock of CorporationCapital stock is issued by the corporation to raise funds from the…

Q: Define authorized stock, issued stock and outstanding shares

A: Common Stock - Common Stock is the stock issued by the company to the shareholders. They are issued…

Q: Describe related stockholders’ equity statements.

A: Stockholders’ equity statement: This statement shows the changes made in the stockholders’ equity…

Q: Difference between bonds and stock.

A: Stocks: Stocks are the financial instrument that carries ownership interest, issued by the company…

Q: Define stock purchase right

A: Stock purchase rights  are generally issued by a company if they have more amount of debt in which…

Q: Debt in the capital structure could be treated as if it were common stock in the weighted average…

A: Debt in the capital structure could be treated as if it were common stock in the weighted average…

Q: hat is the Book value common equity sh

A: Book value of equity is based on the balance sheet and how much are assets and how much are total…

Q: when shares are issued at a premium the value of the share premium should be :

A: Answer:   Option c.

Q: What are the rights of preferred shares?

A: Two kinds of shares may be issued. 1 ) Preference shares 2 ) Equity shares.

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.