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Which arrangement of the different modes of financing appropriately reflects the related cost of capital from highest to lowest?
a. new ordinary shares,
b. new ordinary shares, new preference shares, accumulated profits, long term debt, short term debt
c. new preference shares, new ordinary shares, accumulated profits, long term debt, short term debt
d. short term debt, long term debt, accumulated profits, new preference shares, new ordinary shares.
e. none of the above
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- The term capital structure refers to_______ O a. Long-term debt, preferred stock, and common stock equity O b. Current assets and current liabilities O c. Shareholders' equity O d. Total assets minus liabilitiesWhich one of the following is short-term source of working capital finance? Retained Profit Factoring service Non-convertible bond Retained profit and factoring service.Which of the following is not a long term source of capital? a. Preferred stock b. Common stock c. Current liabilities. d. Long-term debt
- What interest results from the periodic addition of simple interest to the capital creating a new capital every now and then? a.dividend b.share c.simple interest d.compound interest which term is not related to stock a.ownership b.equity c.shares d.fixed incomeThe cost of equity is _______. A. the interest associated with debt B. the rate of return required by investors to incentivize them to invest in a company C. the weighted average cost of capital D. equal to the amount of asset turnoverDebt in the capital structure could be treated as if it were common stock in the weighted average cost of capital if debt was: a. participating b. callable c. convertible d. cumulative
- Which is a correct statement below? A. Equity is the residual interest in the liabilities of the entity after deducting all of its assets.B. Subscriptions receivable shall preferably be reflected as a deduction from the related subscribed share capital.C. Share premium is also known as capital stock.D. A deficit is a credit balance in retained earnings.Stockholders' equity consists of which of the following? Multiple Choice Paid-in (or contributed) capital and retained earnings. Retained earnings and cash. Long-term assets. Paid-in (or contributed) capital and par value. Premiums and discounts. kWhich is a component of stockholder's equity? a. Sinking funds b. Deferred charges c. Accumulated other comprehensive income d. Realized capital
- The leverage ratio is equal to average total __________divided by average _________________.a. long-term debt; common stockholders’ equityb. assets; common stockholders’ equityc. debt; total assetsd. debt; common stockholders’ equityASSETS LIABILITIES AND CAPITALa. Current assets b. Investments c. Plant and equipment d. Intangiblese. Other assets f. Current liabilities g. Long-term liabilitiesh. Preferred stock i. Common stock j. Additional paid-in capitalk. Retained earningsl. Items excluded from balance sheetUsing the letters above, classify the following accounts according to the preferred and ordinary balance sheet presentation. _____ 1. Bond sinking fund_____ 2. Common stock distributable_____ 3. Appropriation for plant expansion_____ 4. Bank overdraft_____ 5. Bonds payable (due 2010)_____ 6. Premium on common stock_____ 7. Securities owned by another company which are collateral for that company's note_____ 8. Trading securities_____ 9. Inventory_____ 10. Unamortized discount on bonds payable_____ 11. Patents_____ 12. Unearned revenueWhich of the following would be an entry in the statement of changes in equity? Select one: a. Revaluation reserve b. Revaluation gain c. Taxation d. Long term loans
