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: 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: 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: What are the more recently issued (and more frequently traded) bonds called? Why do investors favor…

A: The more recently issued (and more frequently traded) bonds are called Treasury Bonds which are…

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

A: Concept:

Q: It's important for investors to understand what a stock's yield is and why it matters. Define and…

A: Introduction: The earnings made and realized on an investment over a given period are called…

Q: State the assumption about the “boot” that is made in the treasury Stock Method

A: Treasury Stock method:  The treasury stock methodology is a method used by companies to compute the…

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: Why do some financial analysts treat preferred stock as a special type of bond rather than as an…

A: Preferred stock refers to the type of financial asset that are between equity and debt asset.…

Q: Bonds that permit the bondholder to exchange the bonds into shares of common stock at a fixed price…

A: 1) Callable Bond is a derivative which gives the issuer the right to redeem the bond before bond's…

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 risks associated with stocks that may not be also in bonds?

A: The question is based on the concept of different types of risk associated with different financial…

Q: Explain why preferred stock is considered to be a hybrid of equity and debt securities?

A: Preferred stock is a hybrid of equity and debt securities because it combines characteristics of…

Q: What are the pros and cons of a company’s decision to issue stock versus issuing bonds?

A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…

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: Stock returns are unlimited while returns on debt investments are limited to interest payments and…

A: Investment in Equity vs Investment in debt Investment in equity provides a part of ownership in the…

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: From chapter 17: Define stock and bond, describe the difference(s) between the two. Identify what…

A: Stocks:Stocks represent ownership shares in a company, affording individuals who possess these…

Q: When computing diluted earnings per share (EPS), convertible bonds are: A. ignored. B. assumed…

A: Earning Per Share can be calculated as Diluted or Basic . Basic Earning Per share is calculated by…

Q: Preferred stock is similar to a bond because:   it pays a fixed periodic amount it has no maturity…

A: The preferred stock refers to the capital that is raised which has characteristics of both equity…

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: What are convertible bonds

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

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: Why is this statement false. Small stock dividends are accounted for at the stock's par value.

A: This statement is false because: "A small stock dividend are accounted for at market price on the…

Q: Preferred stock is often called a hybrid security because it has some characteristics that are…

A: Preferred Stocks or shares are the shares who have some preference over Ordinary shares. Generally…

Q: Preferred stock may have all of the following characteristics in common with bonds with the…

A: Preferred stocks are a type of security have features of both debt and equity. They usually pay a…

Q: True or False :   Passed dividends on cumulative preferred stock are recorded as a liability.

A: Liability is an obligation which is reported on the balance sheet of the entity. It is to be…

Q: Cumulative preferred stock gives its owners a right to be paid both the current and all prior…

A: Introduction: Cumulative preferred stock is one sort of preferred stock; a preferred stock normally…

Q: Treasury Stock is usually credited for its par value when purchased   True or False

A: when Treasury Stock is purchased it is debited with its purchase price of the stock  journal entry…

Q: Do preferred stockholders receive the share of the company earnings before or after bond interest is…

A: Preference Stockholders are entitled to receive fixed amount of dividend from the company and enjoys…

Q: Stocks and bonds are traded in separate markets, and interest rates are set in bond (debt) markets.…

A: The objective of the question is to understand the relationship between the movements of stock…

Q: The treasury stock method is used to incorporate the dilutive effect of stock options, stock…

A: Diluted EPS( Earning per share) means potential increase in the no of shares and thereby decreasing…

Q: What are the differences of the preferred stock features: cumulative dividends, participating,…

A: Preferred stock is a type of company stock that differs from ordinary stock in that it has special…

Q: Select the answer that contains ONLY potentially dilutive securities. a. convertible debt, junk…

A: Potentially dilutive securities are rightly called so as they dilute the earnings of a shareholder.…