Determine the intrinsic value of an equity share,

Q: What type of earnings per share presentation is requiredin a complex capital structure?

A: Earnings per share:Amount available as earnings for each of the common shares outstanding for a…

Q: Define shareholders wealth. Explain how it is measured.

A: Shareholder valuation is assigned to a company's investors depending on the company's ability to…

Q: How are common shares different from preferred shares? Cite advantages and disadvantages.

A: Share can be defined as unit of ownership in a company. Investors invests in a company by purchasing…

Q: Define cost of common stock

A: Cost of equity: It is the return a firm ought to decide in case investment satisfies the criteria of…

Q: What are the distinguishing classes of shares?

A: Shares: The capital of the company is divided into units of small denomination. It is called Shares.…

Q: What is share capital retirement? What is the effect of this? Discuss.

A: Share Capital Share capital is the fund which are raised from the public for the operations of the…

Q: key factors involved in establishing a dividend policy

A: A dividend policy is the dividend distribution criteria established by a company's board of…

Q: What is the cost of equity in the levered company

A: A levered company has a mix of debt and equity in its capital structure. The company that obtains…

Q: Discuss whether the dividend growth model or the capital asset pricing model should be used to…

A: The dividend growth model and the capital asset pricing model are both methods that can be used to…

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: Explain the accounting for stock-appreciation rights plans.

A: Share Appreciation Rights (SARs): The awards which offer the employees the right to receive either…

Q: What are the different types of equity capital? Give some examples?

A: Equity capital are the funds invested by the owners in the company. The equity holders of the owners…

Q: Define stock purchase right

A: Stock purchase rights  are generally issued by a company if they have more amount of debt in which…

Q: Define shareholder's equity.

A: Financial accounting is the process of recording, summarizing, and reporting all the transactions in…

Q: Explain the treatment of share issuance cost.

A: The monetary bookkeeping term stock issuance costs allude to the costs an organization brings about…

Q: How do investment opportunities affect dividend policy?

A: The question is based on the concept of investment policy and its impact on dividend policy of a…

Q: Write Example for equity dividend?

A: Answer: Equity dividend is the dividend that is paid to equity shareholders.

Q: Write down what are the disadvantages of shareholders equity?

A: Equity is one of the common sources to raise finance. Whenever a company requires finance it can…

Q: Define dividend yield

A: Introduction: Usually, dividend is nothing but a distribution of a portion of profits of the…

Q: What constraints affect dividend policy?

A: Stability of earnings is one of the important factors influencing the dividend policy. If earnings…

Q: Is share dividend payable a current or a non current liability? Explain your answer.

A: The dividend is payable to shareholders on a number of shares they hold as of the date of…

Q: Preference Share Capital

A: Capital is the funds invested in the business to earn revenue.

Q: What is private placement of public equity (PIPE)?

A: When an investor buys shares of publicly traded companies at mutual and negotiated terms of…

Q: Distinguished between reorganization and reduction of share capital.

A: Reorganization of Capital: The act of changing the capital structure of a company by combining or…

Q: Compare authorized share capital with subscribed share capital.

A: Authorized share capital is the maximum amount of share capital that a company is legally allowed to…

Q: How are the earnings per share beneficial for the stakeholders?

A: Earnings per Share (or) EPS are the earnings of the company. And the stakeholders for whom these…

Q: Explain the concept of control and its relationship to ownership percentage

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Define Stock split.

A: 1. A stock split or stock divide increases the number of shares in a company. It is an issue of new…