Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Shares of open end investment companies are bought and sold
A) from/to the investment company
B) on an exchange
C) at the previous day's NAV
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- Common Stock investments using the fair value method are: A. reported at fair value on the balance sheet. B. reported at cost on the balance sheet. C. reported with property, plant and equipment on the balance sheet. D. not reported on the balance sheet.arrow_forwardCalculate the total cost (in $), proceeds (in $), total gain (or loss) (in $), and return on investment for the mutual fund investment. The offer price is the purchase price of the shares, and the net asset value is the price at which the shares were later sold. (Round your return on investment to one decimal place.) Shares OfferPrice TotalCost Net AssetValue Proceeds Per ShareDividends Total Gain(or Loss) Return onInvestment% 500 $10.60 $ $12.80 $ $0.65 $ %arrow_forward1. When an entity issued bonds payable with detachable share warrants, how will share premium be computed if the share warrants are exercised by the bondholders? (Choose an answer and explain why) a. It is the balance of the share warrants outstanding. b. It is the sum of the share warrants outstanding and total par or stated value of the shares issued. c. It is the difference between the proceeds received based on the exercise price and the total par or stated value of the shares issued. d. It is the difference between the proceeds received based on the exercise price plus the share warrants outstanding and the total par or stated value of the shares issued.arrow_forward
- The share capital of a company may consist of: Select one: a. Loans from banks. b. Ordinary or preference shares issued by the company either fully paid or partly paid. c. Debentures issued by the company. d. Secured and unsecured notes issued by the company.arrow_forwardAn offering of shares to institutional investors at a discount to the current market price is known as a: Select one: a. Initial Public Offering (IPO). b. Private Placement c. Rights Issue d. Dividend Reinvestment Plan (DRP).arrow_forwardIn a stock acquisition accounted for by the equity method, a portion of the purchase price often is attributed to goodwill or to specific assets or liabilities. How are these amounts determined at acquisition? How are these amounts accounted for in subsequent periods?arrow_forward
- Accounting for long-term investments in equity securities with controlling influence uses the: Multiple Choice O Trading method. Controlling method. Investment method. Consolidation method. Investor method.arrow_forwardRecord the issuance of shares when sold for cash and for noncash considerationarrow_forwardAll of the following would appear in the contributed capital section of shareholders' equity on the balance sheet except a. bonds payable b. additional paid-in capital from stock conversions c. preferred stock d. share rights and optionsarrow_forward
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