Common stock

understand the various factors impacting the dividend policy when deciding how to allocate a firm’s earnings. 2.1.2 Types of Dividend As mentioned earlier, dividends distribution may take multiple forms, below are some of the most common ones. 1) Cash Dividends: Which is the most common method of Dividends payment for its psychological effect on shareholders who usually prefer to collect their returns immediately and in Cash rather than a non-cash form. The problem is that this form of dividends is limited

Are you just starting out in the stock market? If so, you may be bewildered by the wide variety of stocks and wondering where to put your investment. Aside from the most dominant stocks, there are also other minor ones that are too small to be listed or have just come into the market. These are known as penny stocks and are known for their high risk and unpredictability - they may make enormous returns or the companies may go bust and you may lose all your investments. In this economic turmoil, shares

Stocks play a significant part in our economy. For many investors, stock splits seem to be too great of deal. Everyone loves a good deal. It is a Buy One Get One stock or more for free deal for the investors. Stocks can split into any ratios, but the most common ratio is 2-for-1, 3-for-1, and 3-for-2. Splits of 4-for-3, 5-for-2, and 5-for-4 have been offered to the investors in the past. Recently, Apple (AAPL) surprised content investors by declaring a massive 1-for-7 stock split and announcing a

How to Value Bonds 1. What is the present value of a 10-year, pure discount bond paying $1,000 at maturity if the appropriate interest rate is: a. 5 percent? b. 10 percent? c. 15 percent? 2. Microhard has issued a bond with the following characteristics: Principal: $1,000 Time to maturity: 20 years Coupon rate: 8 percent, compounded semiannually Semiannual payments Calculate the price of this bond if the stated annual

Gonzales food stores. This company is seeking outside funding such as bonds, stocks and “going public.” In addition, we will review the most advantageous methods of investing and explore the different financial markets and what best fits the needs of this company. A, brief overview of the different vehicles available to utilize when investing. The financial market is where investors trade commodities, stocks, mutual funds, stocks, bonds, and traditional bank accounts which all can accrue interest. The

payments that corporations make to their common stockholders (Gallagher and Andrew, 2013). Dividend per share can be calculated as follow: DPS=(Cash Dividend)/(Outstanding Shares) 2.1.1.2 Types of Dividend Based on Accounting Tools, There are five types of dividend. Cash Dividend Board of director will pay dividend amount in cash to all investors holding company’s stock in specific date. The date of record occurs when dividends are assigned to the holders of stocks. On the date of payment, company issues

going to purchase all of Compaq’s common shares outstanding, and pay a total price of 0.6325 shares of its common stock for each share of Compaq’s common stock. To evaluate this transaction for the benefits of HP’s shareholders, we use the excess earnings model to forecast HP’s stock price if it standalone, CPQ’s stock price as a separate company and the stock price after the merger. Then we make a comparison between HP’s stock price when it operates alone and the stock price after the merger to make

Corp. stock $20,000 $19,000 $(1,000) Carolina Co. stock 10,000 9,000 (1,000) Vectorman Co. stock 20,000 20,600 600 Total Portfolio $50,000 $48,600 (1,400) Previous securities fair value adjustment balance -0- Securities fair value adjustment—Cr. $(1,400) During 2011, Carolina Company stock

options - the choice of $20 in cash, additional new common shares or a combination of cash and new share. Based on the following analysis, Ford should go ahead with Value Enhancement Plan. Characteristic of VEP The Value Enhancement Plan has the feature of stock split and share repurchase. Exchanging existing shares for new shares on a one-for-one basis, shareholders are also offered the option to reinvest $20 to receive additional new Ford common shares. In this sense, share price would decrease

registered with the SEC and their common stock trades on the stock exchange. The Company is well capitalized with a $100 million market capitalization for its common stock. Due to R&D expenses and slumping sales, Nearly There is in the need of additional capital. The Company's solution was to issue 5 million shares of Series B preferred stock at $1.20 per share. The proceeds received by the company totaled $5.9 million. The important terms of the Series B preferred stock included dividends, voting rights