Question No: 06Multiple Choice (Select 1 out of 4 options, for the question below. )Which of the following is not a method to pay dividend to shareholders?OptionsO cash payoutO Payment in kindO stock dividendO Bonus shareClear Responso Question No: 07Multiple Choice ( Select 1 out of 4 options, for the question below. )You gifted 200,000 AED to your child on his/her first birthday and deposited the same as bankdeposit for 20 years. How much the child will get at the 21st birthday if the rate of return in the bankFD is 5%?OptionsO Aed 641,427O Aed 642, 261O Aed 530,660Aed 540,850Clear Response< Prevt-

“Since you have asked multiple question, we will solve the first question for you. If you want any…

Answered: estion below. ) Which of the following…

estion below. ) Which of the following is not a method to pay dividend to shareholders? Options O cash payout O Payment in kind O stock dividend O Bonus share

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 8MC: When treasury stock is purchased for cash at more than its par value, what is the effect on total...

See similar textbooks

Related questions

Q: Why might a stock dividend or a stock split be of limited value to an investor? Please explain your…

A: Stock dividend is dividend paying to investors in kind. It is adding value to the shares of the…

Q: Question Which of the following is NOT a form of corporate dividend? A. regular cash dividend…

A: Dividend: It can be defined as the distribution of the company’s after tax earnings to its…

Q: which of the following is a temporary account? -preferred stock -dividends -retained earnings

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

Q: Which of the following is a characteristic of preferred stock? A. Give voting rights to its owner.…

A: Preferred Stock: They are the combination of equity shares and debt components of capital structure.…

Q: In this section we examine three theories of investor preference: The dividend irrelevance theory.…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: QUESTI Which of the following sources decrease stockholders' equity? O retained earnings O common…

A: The equation for stockholder's equity is as follows: Ending stock holder equity = Beginning stock…

Q: Which of the following would cause a decrease in stockholders' equity? (A) Purchase of equipment (B)…

A: Stockholders' equity consists of common stock, paid-in capital, treasury stock and retained…

Q: stock

A: The term stock repurchase or buyback refers to the company buying its own shares in the market…

Q: How do cash dividends affect the realized rate of return from investing in shares of common stock

A: Cash dividends are distribution of profits earned by a company is cash. These are inflows for…

Q: Which of the following is NOT a form of corporate dividend? A. regular cash dividend B.…

A: Dividend: It can be defined as the distribution of the net profits of the company to its…

Q: Discuss why stock dividend and stock split are not real dividend issues.

A: A dividend is a circulation of benefits by an organization to its investors. At the point when a…

Q: Which of the following will reduce Retained Earnings? a. Declaration of a stock dividend b. Payment…

A: Retained earnings refer to the part of net income that is left over after paying all the expenses.…

Q: Which of the following is not a defining feature of common stock? a residual claim on assets voting…

A: Common stock: The common stock is considered as a security that signifies proprietorship in a…

Q: Is stock bonus a real dividend payment in principle?

A: Bonus shares are additional shares that are issued to company's shareholders out of its own…

Q: 1. What is a dividend and what is the difference between cash dividends and stock dividends?

A: A shareholder is a person, company, or institution that owns shares at least one share in a…

Q: What is the difference between a stock split and a stock split effected in the form of a stock…

A: Stock split: It is the way of reducing the value of a share by split one share into multiple shares.…

Q: Which of the following is not one of the primary considerations management must make before a cash…

A: Answer: Primary considerations are those which directly impact any decisions made for the company.…

Q: Why is the ex-dividend date important to stockholders? If a stock is sold on the ex–dividend date,…

A: The ex-dividend date is important to stockholders as it is the date on/after which a new buyer of…

Q: The type of dividend that does not affect total assets and total shareholders' equity is a. share…

A: The dividend is the portion of net income which is distributed to shareholders. Dividend payment is…

Q: Why do companies often repurchase stock instead of paying cash dividends? What is the effect for the…

A: Dividends are the returns that will be paid to the investors who hold the stock of the company. This…

Q: Both stock and bond returns are based on the cash flows generated by the issuing firm. How do…

A: Shareholders : In simple words, the shareholders of the company refers to the equity stakeholders of…

Q: How do I calculate the net abount of stock issued when the firm pays X amount of dollars in…

A: Company give dividends out of net income to shareholders to reward shareholders So that they…

Q: When computing diluted earnings per share, which of the following will not be considered in the…

A: Diluted earnings per share are calculated considering the potential common shares or convertible…

Q: Which of the following is true of a stock dividend?A. It is a liability.B. The decision to issue a…

A: Dividend is the part or share of profit that is being distributed to the shareholders. It can be in…

Q: Topic: Payout Policy What are the drawback(s) of distributing dividends instead of retained…

A: The dividend policy is a decision in deciding the exchange between paying dividends and retaining…

Q: Which of the following is least likely to affect the retained earnings? * Stock Splits O Treasury…

A: Date Accounts Debit Credit Retained earnings xxxx Stock dividend payable xxxx…

Q: Which is not one of the three sources of return for an investor in a common stock? A-debt…

A: The capital structure of a firm consists of common stock, preferred stock and debt.

Q: Which one of the following methods is not derived from the principle that the value of a stock is…

A: The valuation methods can be divided into discounted cash flows method and the comparables method.

Q: Which of the following best describes what investors in shares seek compensation for? OA. The…

A: From the given Statements we have to find what the investors in shares seek compensation for: A)…

Q: re dividends? Do all stocks pay dividend

A: Dividends is the amount of profit distributed to shareholders of the company basis the no. of shares…

Q: Do common stockholders have guaranteed dividends?

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Which of the following statement is false? A -Both stock splits and stock dividends increase the…

A: Stock split is division of shares on par value , thereby decreasing price of shares in market, and…

Q: Explain two reasons for the firm management to prefer stock repurch

A: Stock repurchases :- It means purchasing its own shares by the company. It is…

Q: When a firm is short of cash yet it wishes to distribute something to shareholders, it should…

A: The following are some of the types of Dividends Cash Dividend Stock Dividend Liquidating Dividend…

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: Which is better, a stock dividend or a cash dividend?

A: Stock dividends refer to paying additional units of shares instead of cash. Stock dividends are paid…

Q: Which of the following affects the total Shareholders’ Equity? a. Declaration of a scrip…

A: a Declaration of a scrip dividend :- this dividend is paid to shareholders at later date , company…

Q: Which of the following is a current liability? a. Preferred dividends in arrears. b. A dividend…

A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…

Question

100%

Question No: 07
Multiple Choice ( Select 1 out of 4 options, for the question below. )
You gifted 200,000 AED to your child on his/her first birthday and deposited the same as bank
deposit for 20 years. How much the child will get at the 21st birthday if the rate of return in the bank
FD is 5%?
Options
O Aed 641,427
O Aed 642, 261
O Aed 530,660
Aed 540,850
Clear Response
< Prevt-

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Which of the following accounts represents an equity account? Question 9 options: Ordinary actions All of the above Share premium RND Preferential shares
Which of the following methods should be used to account for the conversion of preferred stock to common stock? Book Value Market Value I. Yes No II. Yes Yes III. No Yes IV. No No III IV I II
Which of the following correctly ranks the costs of debt (rd), preferred stock (rp), retained earnings (rs), and new common stock (re)? Question 10 options: rd < rp < rs < re rd > rp > rs > re rp < rs < re < rd rp < rs < rd < re
Preferred stock is a hybrid Most preferred dividends are similar to _______ on bonds Answer 1 Choose...coupon paymentsinterest paymentsfixed dividend paymentspar value Most preferred stocks entitle their owners to ___________
What is the usual effect of a stock split (effected in the form of a stock dividend) on each of the following? Retained earnings Total Paid-in capital No effect No effect Increase Decrease No effect Increase Increase Increase a. b. C. d. Multiple Choice O O Option A Option C Option D Option B
Answer the multiple-choice question below: 1. Which of the following is/are incorrect about the characteristics of preferred stock: I.It has a fixed maturity date II.Dividends are tax-deductible III.Dividend payments vary just like common stock IV.Can be easily converted to a number of common stock Select one: a. I and II only b. I only c. I, II, and III only d. All of the above
Why is there a cost for retained earnings? Group of answer choices Earnings can be reinvested or paid out as dividends Investors could buy other securities, earn a return Neither Either
Which type of stock pays a fixed dividend? A. common B. preferred C. debenture D. convertible
Determine if this shall result in recognition of liabilities 6. Declaration of cash dividends on cumulative preference shares a. yes b. no
How does a 2: 1 stock split (stock-split-up) affect the following two items? Par Value per Share Retained Earnings Select one: to. Increase Has no effect b. Decrease Decrease c. Decrease Has no effect d. Has no effect Has no effect
METHODS Question 5 of 30 Theory believes that dividend or capital gains has an impact on the price of the stock. Select the correct response Dividend relevance theory Dividend irrelevance theory Bird-out-hand theory None of the choices ( Previous Contin
Please assist me with the questions. options for B: (first blank) lowest/highest (second blank) a combination of some share price appreciation and a moderate dividend/price appreciation only (third blank) high/low (fourth blank) a low/no (fifth blank) a low/no (sixth blank) lowest/largest