Preference shares have characteristics similar to bonds because it ______________ A. has a fixed monthly rate. B. has a fixed dividend amount. C. represents the ownership of the company. D. has no fixed dividend amount.
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A. has a fixed monthly rate.
B. has a fixed dividend amount.
C. represents the ownership of the company.
D. has no fixed dividend amount.
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- Which is not true of preference shares? * A. Payment of dividends is mandatory if cumulative. B. Preference shares are convertible to ordinary shares or bonds. C. It is similar to debt financing in terms of limited cost payment. D. Cost is higher than cost of bonds.When the selling price of treasury shares is greater than its cost, the company credits the difference to a.Gain on Sale of Treasury Shares. b.Share Premium–Treasury. c.Treasury Shares. d.Share Premium–Ordinary.1) A long-term note secured by collateral may be referred to as a a) premium. b)bond. c)debenture. d)mortgage. 2) Which of the following usually represents the largest number of common shares? a)treasury shares. b)authorized shares. c)issued shares. d)restricted shares. What is the effect of the declaration of a cash dividend? like increase or decrease to either liability, asset, statement of income, statement of financial position and shareholder equity? 3) At December 31, 2022, Marigold Inc. has 14200, $4, cumulative preferred shares issued. If the board of directors declares a $54400 dividend at this date a) the company will owe the preferred shareholders nothing further. b) the company still has to pay the preferred shareholders $56800, regardless of what amount was declared. c) the company will still owe the preferred shareholders $2400 and should record a dividend payable for this amount. d) $2400 will be disclosed as dividends in arrears in the notes to the financial statements.…
- Which of the following statements correctly describe characteristics of preference shares? Group of answer choices A. The required return on preference equity is expected to be less than the required return from ordinary equity. B. None of the other statements are correct C. A participating preference share participates in the interest payments paid to debtholders. D. Preference shares are called “hybrid” securities because they display characteristics of both short-term and long-term debt.Preferred stock is similar to a bond because: Group of answer choices it has a fixed amount to the investor. it represents an ownership interest. all of these. it has a maturity at which time the corporation repays par value.When computing diluted earnings per share (EPS), convertible bonds are:A. ignored.B. assumed converted whether they are dilutive or antidilutive.C. assumed converted only if they are antidilutive.D. assumed converted only if they are dilutive.
- Tell whether the following statements describe the characteristics of stocks or bonds. e. Issues of a stake of ownership in a company. f. Investment that generally have higher reward. g. Debt that is made with an investors for cash exchange for interest. h. Investors can earn money if the security increases, but they can lose money if the security decreases. i. The seller agrees to pay interest on the loan at a fixed rate and schedule.Share Premium account is recorded as a credit when- a) Shares are sold higher than par value b) Shares are sold less than the par value c) Shares are sold at par value d) All of theseDetermine if the following, if stocks or bonds 1. Its buyers receive return called dividend. a. Stocks b. Bonds 2. It is paid based on its redemption value. a. Stocks b. Bonds 3. It is said to be redeemed at par if face value equals redemption value a. Stocks b. Bonds 4. It is represented by a certificate which is proof of ownership. a. Stocks b. Bonds 5. It grants credit to a company. a. Stocks b. Bonds 6. It represents a claim on the company's assets and earnings. a. Stocks b. Bonds 7. Its buyers become lenders to the company. a. Stocks b. Bonds 8. It is a written contract between the borrower and the lender. a. Stocks b. Bonds 9. Some owners of it earn voting rights to some important company decisions. a. Stocks b. Bonds 10. Some owners of it earn voting rights to some important company decisions. a. Stocks b. Bonds
- Common stocks typically have which of the following that bonds do NOT have? 1. I. Voting rights 2. I1. Fixed cash flows 3. Ill. Set maturity date 4. IV. Tax deductibility of cash flows to investorsThe secondary market is the market in which: Select one: a. The sale proceeds of a trade flow to the issuer of the security. b. Publicly held firms issue new shares of stock. O c. One shareholder sells securi ties to another shareholder. d. Only bonds or other debt securities are sold.When a company retires bonds early, the gain or loss on the retirement is the difference between the cash paid and the…… Select one: a. original selling price of the bonds. b. carrying value of the bonds. c. maturity value of the bonds. d. face value of the bonds.