Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Earnings per share is a factor used by the stock market to determine stock prices.
Select one:
True
False
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- When computing diluted earnings per share, which of the following will not be considered in the calculation? O Dividends paid on common stock. O The weighted average common shares. O The effect of stock splits. O The number of convertible bondsarrow_forwardTrue or False? The Paid-in Capital, Treasury Stock account can have a zero or credit balance. True or False? Present values can be found using Excel, a calculator or present value tables.arrow_forwardThe optimal distribution strategy achieves a balance between capital gains and current dividends in order to raise the stock price of the company. true or falsearrow_forward
- All stocks pay dividends, and therefore one can count on them having a dividend yield. OA. True OB. Falsearrow_forwardis common stock decrease debit or credit?arrow_forward1. Choose the best definition for a Stock? A. Being a creditor to a company B. Robin Hood C. Ownership shares of a company D. Voting shares in a company E. Ownership shares of a public company 2. When investing in stocks, there are two ways in which you can have a positive return. What are the components of this return called? A. Dividends and Capital Loss B. Robin Hood C. Coupon and Capital Gains D. Coupon and Capital Loss E. Dividends and Capital Gainsarrow_forward
- Which is not one of the three sources of return for an investor in a common stock? A-debt repurchase B-dividend C-earnings growth d-valuation changearrow_forwardthe ratio of dividends per share to earnings per share is known as the dividends yield (T/F)arrow_forward7. What is Stockholder Equity? Include Retained Earnings and Common Stock explanations.arrow_forward
- Which 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_forwardStock and dividend returns can be shown in percentage, dollar, and per-share values. True or Falsearrow_forwardWhich of the following ratios incorporates stock market data?a. Inventory turnover. c. Price/earnings ratio.b. Earnings per share. d. All of the above.arrow_forward
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