stock is a special form of stock having a fixed periodic dividend that must be paid prior to payment of any interest to outstanding bonds. Is this true or fals

Q: Why might a stock dividend or a stock split be of limited value to an investor? Please explain your…

A: Stock dividend is dividend paying to investors in kind. It is adding value to the shares of the…

Q: Which of the following statements is false? The cost of debt securities is highest due to their…

A: The situation under which any entity can encounter loss, injury or damage is known as a risk. Risks…

Q: Convertible bonds and convertible preferred stock are always considered dilutive for earning per…

A: Convertible bonds: Convertible bonds refers to the fixed income corporate debt security which yields…

Q: Why might a company choose to raise money through bonds, rather than take out a note payable or…

A: Bonds are the long-term liability of the company where the company raises the money in lieu of…

Q: statements are true of long-term investments? They can include bonds and stocks not intended to be…

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Why does the dilutive effect of stock options called the treasury stock method?

A: Treasury Stock Method: In this method, a company that receives exercised amount on the outstanding…

Q: Which one of the following terms applies to a bond that can be exchanged for the issuing company's…

A: Convertible bond or convertible debt is a type of bond that the bond holder can convert the bond…

Q: Why would a company choose to issue bonds instead of issuing stock?

A: Concept:

Q: true or false

A: Public Offering A public offering is when the issuer of the company offers securities like bonds or…

Q: Every time a share of stock is sold on the stock market, the issuing company receives a portion of…

A: Stock market transactions :Primary market: This is where companies issue new shares for the first…

Q: Explain the statement “The money market is necessary but not sufficient for the liquidity of…

A: Money market instruments would be considered as investments under short term securities. These…

Q: What are the most significant differences between stocks and bonds? A day would come when bonds…

A: Introduction : Bonds are units of corporate debt issued by firms and securitized as tradable assets…

Q: Which is not true of preference shares? *       A. Payment of dividends is mandatory if cumulative.…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: If given the original value (par value) and market price (the price the bond sold for), how do you…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: what does it mean when a bonds is traded at par?

A: A bond is a debt instrument that is issued by the borrower. The bonds may be of municipal bonds and…

Q: In some cases, stock price decreases on the announcement of equity repurchases. How would you…

A: A stock is a financial security that is a part of a corporation's equity capital. It is issued at…

Q: What effect does the trend in stock prices (subsequent to issue) have on afirm’s ability to raise…

A: At different interval of time, firm may require capital to invest in various investment proposals.…

Q: All of the following could be considered a financial security with the exception of: Treasury bond…

A: The question is related to Financial security. Financial securities are Shares, debentures,…

Q: available-to-sell stock versus a held-to-maturity stock

A: Available-to-sell stock is a type of security that can be bought and sold before maturity.…

Q: 1. What is the difference between a stock and bond? 2. If you were an investor, where would you…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Who is responsible for monitoring stock in the stock market? Who issues a stop loss on stocks?…

A: The regulating agencies of stock market are responsible for stock markets monitoring. Different…

Q: What are the advantages and disadvantages of investing in stocks vs bonds

A: Investing in stocks has the following risk: Unlike bonds, investment in common stocks does not…

Q: A convertible bond issue should be included in the diluted earnings per share computation as if the…

A: A CONVERTIBLE SECURITY IS A POTENTIALLY DILUTIVE SECURITY . ALL POTENTIALLY DILUTIVE SECURITIES…

Q: How is EPS calculated if no preferred stock is involved?

A: EPS refers to Earnings Per Share. It is the amount of net income earned per one equity share held by…

Q: Why would a company choose to issue floating-rate as opposed to fixed-rate preferred stock?

A: A floating interest rate refers to a variable interest rate that developments over the length of the…

Q: ina

A: Explanation : In simple words, Borrowers who use indirect financing, such as with a financial…

Q: Differentiate treasury shares from watered stock. (With explanation)

A: There are different types of shares that a company can have in its balance sheet. Treasury shares…

Q: Which of the following statements is TRUE regarding Stocks? O A. Stocks typically have very…

A: A stock also known as equity or a share is a type of financial security which represents the…

Q: When bondholders decide to exercise their convertible bonds, the company values the common stock at…

A: The question is asking about the value at which a company would record common stock when bondholders…

Q: Why might the company choose to make the bonds convertible into common stock?

A: Bonds:   A bond is a financial instrument for raising debt as it is called a debt instrument. It…

Q: The cash flows associated with common stock are more difficult to estimate than those related to…

A: Common stock is the pool of common shares that a company issues

Q: Which of the following characteristics accurately describes the stock market? An active market that…

A: Stock market is the place where trading of shares done. This helps to determine the share value of a…

Q: Both stock and bond returns are based on the cash flows generated by the issuing firm. How do…

A: Shareholders : In simple words, the shareholders of the company refers to the equity stakeholders of…

Q: What are convertible bonds

A: Bonds are financial instruments which provides fixed returns to its holders. Bonds actually, have a…

Q: What is treasury stock? Why would a company repurchase its own stock? How might they dispose of the…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: Explain the importance of common stock yield to investors. Define and explain a bond yield. What…

A: Stock Yield: The dividend yield, which is expressed as a percentage, is the difference between the…

Q: A preferred stock has a fixed dividend and a priority status over other equity securities? Select…

A: As the name suggests, preferred stock owners have higher claims as compared to common stock holders.