Which of the following is not a defining feature of common stock? a residual claim on assets voting rights a residual claim on cash flows a fixed return

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: What are some advantages and disadvantages of stockrepurchases?

A: Answer: Stock repurchases is nothing but the allocation of profits by a corporation to owners by…

Q: Why is the distinction between paid-in capital andretained earnings important?

A:

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: whats the return on assets? whats the return on common stockholders equity?

A: The Return on assets It is the return ratio calculated by dividing Net income by total average…

Q: Which of the following item does not appear under the head ‘Reserves and Surplus’ in Balance Sheet…

A: Dividend means the amount given to shareholder of the company as profit distribution by company.…

Q: What are the different bases for stock valuation when assetsother than cash are received for issued…

A: Definition:

Q: Accounting type Question: Bonus shares cannot be issued out of: A. Profit and Loss a/c B. Capital…

A: Bonus shares are issued by cashing in on the free reserves of the company. The assets of a company…

Q: Which of the following would result from watered shares? overstated capital understated assets…

A: solution : Which of the following would result from watered shares? Correct answer is overstated…

Q: When liabilites increase and stock holder equity decreases, what is the total assets?  shouldn't it…

A: According to the accounting equation, the total of liabilities and the stockholder equity is the…

Q: Which of the following is not associated with characteristics of common stock? O residual claim on…

A: A common stock is a sort of stock that is issued to the majority of the shareholders of a…

Q: Why dividends are not deductible?And what could be the order of priority regarding income and assets…

A: Dividends: It refers to the that part of the profit that is given to common shareholders. It is…

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: Which of the following is not a long term source of capital? a. Preferred stock b. Common stock c.…

A: Sources of capital can be long-term and short-term. Those sources which have a repayment period of…

Q: The cash flows associated with common stock are more difficult to estimate than those related to…

A: Common stock is the pool of common shares that a company issues

Q: What does it indicate when there are outstanding units of stock

A: Share of a Stock are outstanding implies that the specified number of share of the stock have been…

Q: What is the difference between common stock and retained earnings?

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: How does authorized stock differ from outstanding stock?

A: Outstanding stock: The total number of shares that are authorized and issued by a public company,…

Q: Why are flotation costs higher for stock than for debt?

A: Floatation cost is the cost that the company has to bear when it issues new securities in the…

Q: Cost of Capital

A: INTRODUCTION In simple words cost of capital is the cost incurred for using capital both equity and…

Q: Which of the following is not a method that may be used to account for treasury shares? a. Cost…

A: The treasury shares are the shares which are reacquired by the issuing company from the…

Q: circumstance the Dividend Discount Model (DDM) cannot be used to determine the price of a stock

A: Dividend discount model It is generally utilized by investors for the measurement of the value of…

Q: Which of the below statements is false for equity?  A. Limited liability B.Residual claim on firm…

A: Equity holders are one among the stakeholders of a company. Equity holders or shareholders are the…

Q: What is stock split? Distinguish between a bonus issue and a stock split.

A: Stock Split Means: it refers to that a company divides its existing share into multiple shares or a…