Matching
Match the following definitions with the appropriate terms
Premises:
The amount that must be paid to call and retire a preferred share.
The earning of a higher return on common stock by paying dividends on preferred stock or interest on debt at a rate that is less than the rate of return earned with the assets from issuing preferred stock or debt.
The price at which stock is bought or sold in the market.
The difference between the par value of stock and its issue price when it is issued at a price above par value.
No-par stock to which the directors assign a stated value per share; this amount becomes the minimum legal capital.
A preferred stock that has the right to be paid both the current and all prior periods' unpaid dividend before any dividend is paid to common stockholders.
The equity of a corporation.
The value assigned to a share of stock by the corporate charter when the stock is authorized.
Stock that gives its owners a priority status over common stockholders in one or more ways, such as the payment of dividends or the distribution of assets.
Stockholders equity applicable to common shares divided by the number of common shares outstanding.
Responses:
Cumulative preferred stock
Par value
Premium on stock
Book value per common share
Financial leverage
Call price
Market value
Stockholders' equity
Preferred stock
Stated value stock
Correct Answer:
Premises:
Responses:
The amount that must be paid to call and retire a preferred share.
The earning of a higher return on common stock by paying dividends on preferred stock or interest on debt at a rate that is less than the rate of return earned with the assets from issuing preferred stock or debt.
The price at which stock is bought or sold in the market.
The difference between the par value of stock and its issue price when it is issued at a price above par value.
No-par stock to which the directors assign a stated value per share; this amount becomes the minimum legal capital.
A preferred stock that has the right to be paid both the current and all prior periods' unpaid dividend before any dividend is paid to common stockholders.
The equity of a corporation.
The value assigned to a share of stock by the corporate charter when the stock is authorized.
Stock that gives its owners a priority status over common stockholders in one or more ways, such as the payment of dividends or the distribution of assets.
Stockholders equity applicable to common shares divided by the number of common shares outstanding.
Premises:
The amount that must be paid to call and retire a preferred share.
The earning of a higher return on common stock by paying dividends on preferred stock or interest on debt at a rate that is less than the rate of return earned with the assets from issuing preferred stock or debt.
The price at which stock is bought or sold in the market.
The difference between the par value of stock and its issue price when it is issued at a price above par value.
No-par stock to which the directors assign a stated value per share; this amount becomes the minimum legal capital.
A preferred stock that has the right to be paid both the current and all prior periods' unpaid dividend before any dividend is paid to common stockholders.
The equity of a corporation.
The value assigned to a share of stock by the corporate charter when the stock is authorized.
Stock that gives its owners a priority status over common stockholders in one or more ways, such as the payment of dividends or the distribution of assets.
Stockholders equity applicable to common shares divided by the number of common shares outstanding.
Responses:
Related Questions
Q184: _ generally consist of a company's cumulative
Q198: If a company discovers a mistake in
Q199: _ preferred stock gives the issuing corporation
Q200: Match the following definitions with the appropriate
Q207: Dividend payment involves three important dates. They
Q209: The price-earnings (PE) ratio is calculated by
Q209: _ is the annual amount of cash
Q221: _ has special rights that give it
Q226: When preferred stock is cumulative and the
Q244: Holders of _ have a right to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents