What is the difference between book value per share of common stock and market value per share? Why does this disparity occur?

Q: What is the difference between cumulative and non-cumulative preferred stock?

A: Preference stocks are ownership stocks with fixed dividends without any voting rights. Dividends are…

Q: why does the value of a share of stock depend on dividends?

A: Dividend on stocks: Dividend is the proportion of profit that the company distributes among its…

Q: How does preferred stock differ from bothcommon equity and debt? Is preferred stock morerisky than…

A: Difference between equity stock and preference stock: Both equity shares and preference shares…

Q: What does the rate of return on common stock show, and how is it calculated?

A: Rate of return on the common stock: It signifies the amount of net income that has been retained for…

Q: How does preferred stock differ from common stock?

A: Capital Stock of CorporationCapital stock is issued by the corporation to raise funds from the…

Q: What is the significance of book value per share? How is it computed if: Only one class of share…

A: The company issues various securities to the general public for raising capital. It includes…

Q: What are stock dividends and stock splits?

A: Stock dividend: It is a dividend installment made in shares instead of as money to investors. The…

Q: What effect do stock dividends or stock splits have on thecomputation of the weighted-average number…

A: Stock split and stock dividend: Stock dividend refers to a distribution of stock of the company to…

Q: s it true of false that stock sold for amounts in excess of par value results in a gain reported on…

A: A company issues its common stock at par value or at an amount more than the par value. The amount…

Q: What is the weighted average number of ordinary shares outstanding?

A: Calculation of weighted average number of ordinary shares outstanding: Date Particulars  Share…

Q: What is the difference between stock split and stock dividends.

A:

Q: Discuss why stock dividend and stock split are not real dividend issues.

A: A dividend is a circulation of benefits by an organization to its investors. At the point when a…

Q: How do stock dividends and splits affect stock prices?

A: Answer: Unlike cash dividends, stock dividends and stock splits also influence the market price of a…

Q: What are the similarities and differences between an overall rate and an equity dividend rate?

A: Answer: Equity is nothing but the difference between asset owning values and liabilities against…

Q: Which of the following is not a defining feature of common stock? a residual claim on assets voting…

A: Common stock: The common stock is considered as a security that signifies proprietorship in a…

Q: How is preferred stock similar to long-term debt? How is it comparable to equity?

A: The Answer :

Q: how do the upward trend and downward trend of share price(stock price changes) relates to the market…

A: Market Efficiency - A market is efficient when such  market is characterized by perfect and…

Q: What is the difference between a stock split and a stock split effected in the form of a stock…

A: Stock split: It is the way of reducing the value of a share by split one share into multiple shares.…

Q: Why dividends are not deductible?And what could be the order of priority regarding income and assets…

A: Dividends: It refers to the that part of the profit that is given to common shareholders. It is…

Q: What is the difference between Par Value of shares and Issue price of shares?

A: Solution: Par value is the minimum fixed price which a company can demand for its share issue.…

Q: What is the formula for the cost of preferred stock?

A: With flotation cost in %: Cost of preferred stock = Preferred dividend / (Price*(1-Flotation cost)

Q: What is the difference between a stock split and a stock split effected in the form of a stock…

A: Stock split is an events that increase the outstanding shares and reduce the stated par value. For…

Q: How is book value per share calculated? Explain why book valuesoften deviate from market values.

A: Book value per share is overall value of company’s assets on its balance sheet. It means the value…

Q: Where can authoritative IFRS be found related to dilutive securities, stock-based compensation, and…

A:

Q: What are stock splits and stock dividends? Whatare the advantages and disadvantages of each?

A: Introduction: Usually, dividend is nothing but, sharing a portion of profits of the corporation, as…

Q: oes cost

A: Cost of capital : The required return on capital, especially as the expense of developing a new…

Q: When computing diluted earnings per share, which of the following will not be considered in the…

A: Diluted earnings per share are calculated considering the potential common shares or convertible…

Q: When does reverse stock split occurs?

A: Stock split means reducing the face value of single share. For example, A share of $100 will be…

Q: What is a stock dividend?

A: Dividends:Dividends are the distributions made to the owners of the company (stockholders) in the…

Q: what is the difference between individual stocks and the stock market

A: Investing means allocating the funds in different securities, assets, or businesses with the motive…

Q: is common stock decrease debit or credit?

A: Common Stock-  It refers to the shares which are issued by the organization within the general…

Q: What is the difference between a stock dividend and a stock split?

A: Stock: It can be defined as the unit that reflects the equity stake or ownership interest in a…

Q: The difference between equity shares and preference shares and debt?

A: The various source using which an entity can raise its finance to run its business operations are;…

Q: Distinguish between common stock and preferred stock,and explain the difference between market value…

A: Common stock is a security that represents ownership in a corporation. Holders of common stock elect…

Q: Is preferred stock comparable to long-term debt in any way? Is it comparable to equity in any way?

A: Preferred stocks are the form of shares being issued by a company for increasing its capital. The…

Q: How does authorized stock differ from outstanding stock?

A: Outstanding stock: The total number of shares that are authorized and issued by a public company,…

Q: What us earnings per share? What us its significance to the shareholders? How is it computed if:…

A: Earning per share (EPS) is calculated as a company’s profit divided by number of shares outstanding…

Q: How does an increase in price of share of acquiring company affect the value to the target in…

A: The increase in price of the share of acquiring company and its effect on the value of stock of…

Q: What does it mean to state that a company’s book value per share of common Q stock is less than its…

A: A share of a company represents the ownership proportion in the company. A holder of common stock is…