Chapter 13 Test-TaNisha 1. Preferred stock on which the right to receive dividends is forfeited for any year that the dividends are not declared is referred to as: A) Participating preferred stock. B) Callable preferred stock. C) Cumulative preferred stock. D) Convertible preferred stock. E) Noncumulative preferred stock. | | Correct Answer(s): | E | 2. Book value per common share is computed by: A) Multiplying the number of common shares outstanding times the market price
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Exercise of convertible preferred stock. F 5. Convertible preferred stock exercise. T 6. Allocating proceeds between debt and detachable warrants. F 7. Allocating proceeds from nondetachable warrants. T 8. Intrinsic value of a stock option. F 9. Compensation expense in fair value method. T 10. Service period in stock option plans. F 11. Accounting for nonexercise of stock options. F 12. Accounting for stock option forfeiture. T 13. Cumulative preferred stock and EPS. F 14. Restating
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Corporations: Dividends, Retained Earnings, and Income Reporting ASSIGNMENT CLASSIFICATION TABLE Brief Exercises 1, 2, 3 A Problems 1A, 2A, 3A, 4A, 5A B Problems 1B, 2B, 3B, 4B, 5B Study Objectives 1. Prepare the entries for cash dividends and stock dividends. Identify the items reported in a retained earnings statement. Prepare and analyze a comprehensive stockholders’ equity section. Describe the form and content of corporation income statements. Compute earnings per share. Questions 1, 2
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000 Common Stock (80,000 X $5) 400,000 Paid-in Capital in Excess of Par 80,000 Mar. 1 Organization Expense 35,000 Common Stock (5,000 X $5) 25,000 Paid-in Capital in Excess of Par 10,000 (Note: In the past, these costs would have been charged to Organiza¬tion Costs) July 1 Cash (30,000 X $8) 240,000 Common Stock (30,000 X $5) 150,000 Paid-in Capital in Excess of Par 90,000 Sept. 1 Cash (60,000 X $10) 600,000 Common Stock (60,000 X $5)
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Harvard Business School 9-899-097 Rev. November 19, 1998 Walnut Venture Associates (D): RBS Deal Terms It was Friday, June 5, 1998, and Bob O’Connor was headed home for the weekend. He knew it would be a busy one, for he had many decisions to make. He had been trying to raise capital for his Company – the RBS Group, a software firm – for almost a year. He felt like he was finally nearing the end of this process, but now more issues had arisen. First, his prospective investors wanted to increase
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Chapter 02 Asset Classes and Financial Instruments Multiple Choice Questions 1. Which of the following is not a money market instrument? A. Treasury bill B. Commercial paper C. Preferred stock D. Banker's acceptance 2. Thirteen week T-bill auctions are conducted ____. A. daily B. weekly C. monthly D. quarterly 3. When computing the bank discount yield you would use ____ days in the year. A. 260 B. 360 C. 365 D. 366 4. A dollar denominated deposit
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To: [Hearts ‘R Us] From: [Poojan Bhattarai, Jennifer Paul, Johan Tong] Date: [] Re: [Classification of preferred stock] Executive Summary The single most important problem faced by the company is: the classification of preferred stock. The primary cause of this problem is: To address this problem the company should Situation Overview Hearts ‘R Us (the company) is a private, medical device research and development company. The company is in the final stages of going to market with
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Stock Valuation Worksheet Names _____________________________________________________________________ 1. A firm has the balance sheet accounts common stock and paid-in capital in excess of par, with values of $40,000 and $500,000, respectively. The firm has 40,000 common shares outstanding. If the firm had a par value of $1, how much did the stock originally sell for? 2. A firm has an issue of preferred stock outstanding that has a par value of $100 and a 4% dividend. If the current market
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Católica-Lisbon School of Business and Economics Private Equity - 2015/2016 Goforit.com Three Católica-Lisbon School of Business and Economics students called Anna, Christian and Robert founded a new internet-based software company. Their idea was to explore the Internet’s full potential by launching this venture called Goforit.com, and they decided to freeze their master degree enrolment for this. What preoccupied the three young founders the most was a term sheet they had recently received
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corporation's stock is purchased by the corporation on the open market but is held in treasury and not retired, which of the following is correct? Question 5 options: a. A credit will be recorded to the treasury stock account, which is a liability account. b. A debit will be recorded to the treasury stock account, which is an equity account. c. A debit will be recorded to the treasury stock account, which is a liability account. d. A credit will be recorded to the treasury stock account, which
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