b) Calculate the cost of preferred shares for Y capital structure.

Q: How does preferred stock differ from bothcommon equity and debt? Is preferred stock morerisky than…

A: Difference between equity stock and preference stock: Both equity shares and preference shares…

Q: he effect of stockholders divided is to

A: A shareholder, sometimes known as a stockholder, is a person, business, or organization that owns at…

Q: How are stocks characterized? In detail

A: Stock are important sources of capital and company raises capital through the stock.

Q: What are the basis of common stock valuation?

A: Common stock is defined as the security, which used to represent an ownership in the company. Common…

Q: what is base stock methods?

A: The base stock method is a valuation technique for the inventory asset, where the minimum amount of…

Q: Outline the advantages and disadvantages of dealing with preference shares from debt holders’ point…

A: A company has several sources from where it can raise funds. It can issue equity shares and the…

Q: What are the similarities and differences between an overall rate and an equity dividend rate?

A: Answer: Equity is nothing but the difference between asset owning values and liabilities against…

Q: Describe the nature of preference dividend and equity dividend with your own suit

A: Answer: Preference dividend is the dividend that are given on preference shares and equity dividend…

Q: What is the difference between cumulative and noncumulative preferred stock?

A: Cumulative preference shares:   Under a cumulative preference share, if the dividend payments have…

Q: Define the term Stock Appreciation Rights.

A: Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of…

Q: Explain why preferred stock is considered to be a hybrid of equity and debt securities?

A: Preferred stock is a hybrid of equity and debt securities because it combines characteristics of…

Q: What is the difference between Par Value of shares and Issue price of shares?

A: Solution: Par value is the minimum fixed price which a company can demand for its share issue.…

Q: Compare and contrast common stocks and preferred stocks

A: Stocks are securities issued by the companies to procure funds from outsiders. The two types of…

Q: 2. What are the two types of fixed-income portfolio management strategies and why is each used?

A: The portfolio composed of securities resulting in the regular cash flows which will ultimately helps…

Q: What is meant by par value, and what is its significance to stockholders?

A: Par Value Par value is also known as face value. Par value is the value which is mention on the…

Q: What is a share of stock? What is a bond? Explain their differences andsimilarities.

A: The bonds and shares are issued in the capital market in order to fulfil the capital requirement of…

Q: What are the rights of preferred shares?

A: Two kinds of shares may be issued. 1 ) Preference shares 2 ) Equity shares.

Q: What are the three most common forms of equity funding?

A: Equity funding involves the sale of shares to raise capital.

Q: Distinguish between common and preferred stock.

A: Issuance of stock:It refers to the number of shares that are sold to the stockholders from number of…

Q: Summarize the major factors affecting stock price?

A: Answer: Investment in stock market is uncertain, because stocks respond to various internal and…

Q: How to calculate market price range of common stock?

A: Market price per share: A market price per share is total value of company divided by number of…

Q: How do stock repurchases affect the EPS and ROE ratios?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: How is each type of risk used in the capitalbudgeting process?

A: Risks in capital budgeting is nothing but uncertainty about the future profitability of a project.…

Q: How do we determine the book value of a stock?

A: Book value is the value of total equity or net asset value of the business. The book value of stock…

Q: Define the term Common stock?

A: Every company has many types of financing for the business, while major financing will come through…

Q: Why are stocks categorized in terms of market capitalization

A: The total market worth of a firm expressed in dollars is its market capitalization, also referred to…

Q: Distinguish between common stock and preferred stock,and explain the difference between market value…

A: Common stock is a security that represents ownership in a corporation. Holders of common stock elect…

Q: Is Preferred stock a hybrid between common stock and debt? Explain how?

A: Answer: Preferred stock is identified with a preferred name. Preference stock is often granted…