-) Which of the following is NOT a reason companies purchase their own stock as treasury stock?O The company wants to increase its EPSO The company wants to have shares available for employee stock options.The company wants to increase stockholders' equity.O The company feels the stock is undervalued in the marketplace.4

Treasury stock, also known as treasury shares or reacquired shares, refers to shares of a company's…

Answered: -) Which of the following is NOT a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Managers of firms may consider a stock repurchase when they believe their stock is ____ by the market, or a offering when they believe their stock is by the market. undervalued; undervalued O overvalued; overvalued O undervalued; overvalued O overvalued; undervalued O none of the above 2255
Is preferred stock more or less risky to investors than debt? Group of answer choices More risky because companies are not required to pay preferred dividend. Less risky because companies are not required to pay preferred dividends. No answer text provided. No answer text provided.
4. Why do companies give stock-based compensation (e.g. stock options) to employee? Please describe some examples of stock- based compensations.
Q2. Many corporations do not pay dividends, why are investors willing to by their stock?
(short answer) If you were the Chief Financial Officer of a public company that was issuing new common stock, which type of underwiring would you prefer, and why?
Explain why the following statement is wrong (1 paragraph maximum): "The main reason why some companies prefer to return cash to shareholders through stock repurchases, rather than dividends, is because repurchases reduce the number of share outstanding and thus tend to increase the stock price."
Which of the following is not a typical question that must be answered with regard to a private company that is owned by a large number of shareholders? Question 46 options: How and when does the company get money from the sale of its stock? What rate of return does the company promise to pay when it sells stock? What is the dividend yield on preferred shares of companies that hold this stock? Who makes decisions in a company owned by a large number of shareholders?

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