You owned 300 shares of Microsoft stock. But you just sold 100 shares thismorning. Which one of the following statements best describes the stock saletransaction?This is an example of a secondary market transaction.This is an example of primary market transaction.This is an example of an exchange of physical assets.This is an example of money-market transaction.

Primary market: The primary market is a place where issue of securities at first time. In this…

Answered: You owned 300 shares of Microsoft…

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...

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Answer Number 1 and 2: 1. Apple Computer decides to issue additional stock with the assistance of its investment banker. An investor purchases some of the newly issued shares. Is this a primary market transaction or a secondary market transaction? 2. What if instead an investor buys existing shares of Apple stock in the open market. Is this a primary or secondary market transaction?
10. If an investor were to sell 100 shares of MicroSoft stock to another investor in the securities market, this would be referred to as what type of transaction? a. A primary market transaction. b. A secondary market transaction c. A money market transaction. d. A futures market transaction. e. None of the above.
3. Below is a snapshot of some information about Microsoft Corporation from Yahoo! Finance on 10/16/2019. B) What is the Microsoft stock price and the market cap? C) Based on the information you collected in question (1), what is the total number of shares outstanding for Microsoft? (Hint: Market cap is the short name for “Market capitalization”. It represents the market value of a company’s total outstanding shares. It is equal to the stock price per share* total number of shares outstanding). D)What is Microsoft dividend payment and dividend yield?
How would this example look in the basic accounting equation?Investors selling their own stock to other investors for 140$ per share of stock.
What are the four major components of stockholders' equity? Explain each component. (Click the icon to view a list of possible explanations.) (Select the four major components of stockholders' equity and the explanation that best describes each component.) 1. 2. 3. 4. Major component Explanations Explanation a. Includes the cumulative record of: unrealized gains and losses on investment securities, unrealized pension costs, and unrealized foreign currency translation gains or losses. b. An amount that will be due within the next reporting period. c. Includes the capital stock sold by the entity at face or par value and amounts received above par value. d. The historical record of earnings that have not been paid out or distributed as dividends to shareholders. e. The amount of cash stockholders withdraw from the company's bank account. f. The amount of the subsidiary's net assets owned by outside shareholders. X
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).
Which of the following transactions will increase thereturn on equity?a. Declare and issue a stock dividend.b. Split the stock 2-for-1.c. Repurchase the company’s stock.d. None of the above.
Which of the following would NOT be considered a secondary market transaction? Select one: O a. A buy order to a dealer for outstanding bonds of a company trading OTC. O b.A buy order to an investment banker for a new IPO stock offering. O CA buy order to a broker for shares of stock in a company on NYSE.
The journal entry to record the sale of treasury stock might include a.a credit to Treasury Stock. b.a credit to Paid-In Capital from Sale of Treasury Stock. c.a debit to Paid-In Capital from Sale of Treasury Stock. d.All of these choices are correct.
The attached file contains hypothetical data for working this problem. Goodman Corporation’s and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown in the file. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. On a stand-alone basis which corporation is the least risky?
I answred question 1 below butneed help with question 2. I've included my answer to question 1 since it is needed to do question 2. 1. We calculated the market value of equity on Sangria's balance sheet by multiplying its current stock price ($7.50) by 100 million, the number of its outstanding shares. The company's future prospects are good, so the stock is trading above book value ($7.50 vs. $5.00 per share). However, interest rates have been stable since the firm's debt was issued and the book and market values of debt are in this case equal. Sangria's cost of debt (the market interest rate on its existing debt and on any new borrowing) is 6%. Its cost of equity (the expected rate of return demanded by investors in Sangria's stock) is 12.4%. The market-value balance sheet shows assets worth $1,250 million. Of course we can't observe this value directly, because the assets themselves are not traded. But we know what they are worth to debt and equity investors ($500 + 750 = $1,250…
17. Analyze the equity section of Gingerbread Corp's balance sheet and determine the following. Be careful to discriminate between a non monetary value and a monetary value. Use a $ sign to indicate a dollar value. 1.Number of shares of common stock that have been issued 2.Number of shares of preferred stock that have been issued 3.BlankDollar value the company paid to repurchase their own stock 4.How many shares of stock are in treasury stock?

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