FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- In what situation should a firm pay a stock dividend?arrow_forwardIn computing Earnings per share when there are preference shares, the total net income after tax is reduced by the dividend in arrears of cumulative preference shares. a. TRUE b. FALSEarrow_forwardplease explain it without plagaiarisnarrow_forward
- When it comes to the market value of a company, is it true or not that it equals the number of outstanding shares multiplied by the most recent transaction price per share.arrow_forwardDiscuss the 4 types of dividends. Which of the 4 is used most often, and why? What may happen to a company’s share price when dividends are announced or paid? Why do you think this is so?arrow_forwardthe ratio of dividends per share to earnings per share is known as the dividends yield (T/F)arrow_forward
- 1. What percentage of total liabilities and stockholders’ equity is stockholders’ equity? What kinds of stock does the company have?arrow_forwardWhich of the following best describes the market capitalization of a company? Select one: a. it represents the total value of the company b. it is the product of the numbers of shares and the price per share c. it represents the total wealth associated with the company's earnings d. it is the most someone would pay for the stockarrow_forwardEarnings per share is a factor used to determine dividends. Select one: True Falsearrow_forward
- How are dividends per share for common stock used in the calculation of the following? O A. O B. O c. OD. Dividends per share payout ratio Numerator Numerator Denominator Denominator Earnings per share Numerator Not used Not used Denominatorarrow_forwardUltimately what determines the value of a share of common stock? Which would be more appropriate for evaluating your company's stock price, a constant or non-constant growth model, and why?arrow_forwardWhich of the following is true about dividends: Group of answer choices Increasing dividends can impact retained earnings. Dividends must always be paid if the company makes profit. Dividends are split equally between stockholders and bondholders. Dividends paid reduce the net income that is reported on a company's income statement.arrow_forward
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