What is the weighted average number of ordinary shares outstanding?

Q: What is listed stock?

A: It is one significant component of capital market. It is a organized market for buying and trading…

Q: How does preferred stock differ from bothcommon equity and debt? Is preferred stock morerisky than…

A: Difference between equity stock and preference stock: Both equity shares and preference shares…

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: How Is Treasury Stock Recorded?

A: Treasury stock: Treasury stocks are the company's own stocks reacquired by the company which were…

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: What does the treasury stock method, “proceeds” include?

A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…

Q: the legal rights of stockholders (common and preferred

A: The income claims on preferred and common shares differ based on the stock issuer. In the case of a…

Q: In accounting for mutual ownerships, what is the treasury stock approach?

A:

Q: What are the distinguishing classes of shares?

A: Shares: The capital of the company is divided into units of small denomination. It is called Shares.…

Q: How are stocks characterized? In detail

A: Stock are important sources of capital and company raises capital through the stock.

Q: what are the differences among common stocks preferred stocks and debt securities

A: A business needs finance to run its business and this can be raised by various means such as Common…

Q: What are the similarities and differences between an overall rate and an equity dividend rate?

A: Answer: Equity is nothing but the difference between asset owning values and liabilities against…

Q: What account is used to record the premium when issuing common stock? What type of account is this?

A: Determine the account used to record the premium when issuing common stock.The issue of common stock…

Q: What is the difference between cumulative and noncumulative preferred stock?

A: Cumulative preference shares:   Under a cumulative preference share, if the dividend payments have…

Q: How to find the par value of preferred stock from a stockholder's equity balance sheet.

A: The objective of this question is to determine the par value of preferred stock using information…

Q: Explain the difference between authorized, issued, and outstanding shares.

A: Stockholders’ Equity: Stockholders’ Equity is the total amount of capital given to a company by its…

Q: Where Is Stock Traded?

A: Stock trading: Stock trading is defined as the purchasing and selling of shares in a specific…

Q: What are the two main differences between common stock and preferred stock?

A: Here, Stock means the ownership of the company in form of equity. Common Stock and preferred stock…

Q: What is the difference between Par Value of shares and Issue price of shares?

A: Solution: Par value is the minimum fixed price which a company can demand for its share issue.…

Q: What is a share of stock? What is a bond? Explain their differences andsimilarities.

A: The bonds and shares are issued in the capital market in order to fulfil the capital requirement of…

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: What are the rights of preferred shares?

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

Q: What is a stock dividend?  How does a common stock dividend distributed to common stockholders…

A: When dividend is issued to stockholders in form of stock instead of cash then it is called as Stock…

Q: State the difference between common stock and preferred stock.

A: Shareholders' fund consist of two types of stock namely common stock and preferred stock. Both…

Q: How to calculate market price range of common stock?

A: Market price per share: A market price per share is total value of company divided by number of…

Q: what is the difference between individual stocks and the stock market

A: Investing means allocating the funds in different securities, assets, or businesses with the motive…

Q: Should preference shares be disclosed as equity or as debt?

A: Stocks: Stocks are shares in ownership in other companies. It represents the capital raised by a…

Q: Whats the difference btween authorized stock, issued stock, and outstanding stock?

A: Stock: Stock represents the number of shares owned by the investors (individual or group) in a…

Q: What are the methods for recording Treasury share?

A: Treasury Share: Companies occasionally buy their own stock out from the company's investors.…

Cost of Capital

Shareholders and investors who invest into the capital of the firm desire to have a suitable return on their investment funding. The cost of capital reflects what shareholders expect. It is a discount rate for converting expected cash flow into present cash flow.

Capital Structure

Capital structure is the combination of debt and equity employed by an organization in order to take care of its operations. It is an important concept in corporate finance and is expressed in the form of a debt-equity ratio.

Weighted Average Cost of Capital

The Weighted Average Cost of Capital is a tool used for calculating the cost of capital for a firm wherein proportional weightage is assigned to each category of capital. It can also be defined as the average amount that a firm needs to pay its stakeholders and for its security to finance the assets. The most commonly used sources of capital include common stocks, bonds, long-term debts, etc. The increase in weighted average cost of capital is an indicator of a decrease in the valuation of a firm and an increase in its risk.