Homework Answers
Answer : A : dividends are tax-deductible (THUMBS UP PLEASE)
Interest is tax deductible and that's why we deduct them before paying tax.
EBIT -INTEREST = EBT - TAX = EARNINGS AFTER TAX.
This is not true for equity & preference dividend. so equity dividend is not tax deductible
Add Answer to:
All of the following are characteristics of common stock EXCEPT (Select the best choice below.) 0...
All of the following are characteristics of preferred stock except O A. It has less restrictive...
All of the following are characteristics of preferred stock except O A. It has less restrictive covenants than debt. OB. It is often considered a quasidebt due to fixed payment obligations OC. It gives the holder voting rights which permit selection of the firm's direction OD. Its holders have priority over common stockholder in the liquidation of assets.
QUESTION 3 1 All of the following are advantages of issuing bonds rather than stock except...
QUESTION 3 1 All of the following are advantages of issuing bonds rather than stock except O financial leverage. payment of bond interest is not required bond interest is tax-deductible. bondholders do not have voting rights.
interest to bond holders and $6.00 million to preferred stockholders in dividends. Use Table 17-4. Time...
interest to bond holders and $6.00 million to preferred stockholders in dividends. Use Table 17-4. Time Watch Co. has $60 million in earnings and is considering paying $7.00 million What are the bondholders contractual claims to payment? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places (e.g., $1.23 million should be entered as "1.23").) Legal contractual claim million Table 17-4 Features of alternative security Issues Common Stock Preferred Stock Bonds 1.Ownership Belongs to common...
All of the following accurately describe preferred stock except: Carries a fixed dividend rate Receives preference...
All of the following accurately describe preferred stock except: Carries a fixed dividend rate Receives preference in distribution of dividends and/or distribution of assets upon liquidation Carries voting rights Is typically issued at par value Which of the following statements most accurately describes cumulative stock? A form of common stock in which the fixed dividend rate accumulates over time, if not paid A form of preferred stock in which the market value grows cumulatively, over time Any share of stock...
7. Preferred stock Preferred stock is often called a hybrid security because it has some characteristics...
7. Preferred stock Preferred stock is often called a hybrid security because it has some characteristics that are typical of debt and others that are typical of common equity. The following table lists several characteristics of preferred stock. Determine which of these characteristics are consistent with debt securities and which are consistent with common stock. Characteristic Debt Common stock May have a sinking fund provision Usually has no specified maturity date Usually has no voting rights Green Caterpillar Garden Supplies...
All of the following are characteristics of common stock except the: A: ability to vote for...
All of the following are characteristics of common stock except the: A: ability to vote for corporate directors. B: the right to share proportionally in any residual value in a bankruptcy proceeding. C: the ability to vote on key issues such as a merger. D:priority over other equity in a bankruptcy proceeding. E: right to share proportionally in dividends paid to common shareholders.
7.If a firm has class A and class B common stock outstanding, it means that A)...
7.If a firm has class A and class B common stock outstanding, it means that A) each class receives a different dividend. B) the par value of each class is different. C) the dividend paid to one of the classes is tax deductible by the corporation. D) one of the classes is probably non-voting stock. 8. The disadvantages of issuing common stock versus long-term debt include all of the following EXCEPT A) the potential dilution of earnings. B) high cost....
Which of the following is NOT a widely-known stock market index? The Dow Jones Industrial Average...
Which of the following is NOT a widely-known stock market index? The Dow Jones Industrial Average The New York Stock Exchange Index The Standard and Poor's 500 Index The OTQ Composite Index Owners of preferred stock: have limited voting rights. usually receive fixed dividend payments. All of the above statements are true. are given priority treatment over common stock with respect to dividends payments, and the claims against the firm' s assets in the event of bankruptcy or liquidation.
Which of the following rights do common stockholders typically not have? Select one: A. Right to...
Which of the following rights do common stockholders typically not have? Select one: A. Right to vote and the right to elect the board of directors B. Right to receive the final distribution of assets in liquidation after prior claims have been settled C. Right to participate in additional issues of stock D. Right to receive dividends at a predetermined rate
Which of the following best describes the relationship between revenue and retained earnings? Multiple Choice A....
Which of the following best describes the relationship between revenue and retained earnings? Multiple Choice A. Revenue represents a cash receipt; retained earnings is an element of stockholders' equity. B. Retained earnings is equal to assets minus expenses. C. Revenue represents the price of goods sold or services rendered; retained earnings represents cash available for paying dividends. D. Revenue increases net income, which in turn increases retained earnings. Which of the following is not a right of stockholders? Multiple Choice...
All of the following are characteristics of preferred stock except O A. It has less restrictive covenants than debt. OB. It is often considered a quasidebt due to fixed payment obligations OC. It gives the holder voting rights which permit selection of the firm's direction OD. Its holders have priority over common stockholder in the liquidation of assets.
QUESTION 3 1 All of the following are advantages of issuing bonds rather than stock except O financial leverage. payment of bond interest is not required bond interest is tax-deductible. bondholders do not have voting rights.
interest to bond holders and $6.00 million to preferred stockholders in dividends. Use Table 17-4. Time Watch Co. has $60 million in earnings and is considering paying $7.00 million What are the bondholders contractual claims to payment? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places (e.g., $1.23 million should be entered as "1.23").) Legal contractual claim million Table 17-4 Features of alternative security Issues Common Stock Preferred Stock Bonds 1.Ownership Belongs to common...
7. Preferred stock Preferred stock is often called a hybrid security because it has some characteristics that are typical of debt and others that are typical of common equity. The following table lists several characteristics of preferred stock. Determine which of these characteristics are consistent with debt securities and which are consistent with common stock. Characteristic Debt Common stock May have a sinking fund provision Usually has no specified maturity date Usually has no voting rights Green Caterpillar Garden Supplies...
7.If a firm has class A and class B common stock outstanding, it means that A) each class receives a different dividend. B) the par value of each class is different. C) the dividend paid to one of the classes is tax deductible by the corporation. D) one of the classes is probably non-voting stock. 8. The disadvantages of issuing common stock versus long-term debt include all of the following EXCEPT A) the potential dilution of earnings. B) high cost....
Which of the following is NOT a widely-known stock market index? The Dow Jones Industrial Average The New York Stock Exchange Index The Standard and Poor's 500 Index The OTQ Composite Index Owners of preferred stock: have limited voting rights. usually receive fixed dividend payments. All of the above statements are true. are given priority treatment over common stock with respect to dividends payments, and the claims against the firm' s assets in the event of bankruptcy or liquidation.
Most questions answered within 3 hours.
-
What is the significance of the constraints in a physical model?
What part do distinct constraints...
asked 55 minutes ago -
a student was diagnosed with myopia (nearshightedness). He can
comfortably read a newspaper when it is...
asked 35 minutes ago -
Consider a 3m x 3m window in a house. The thermal conductivity
is reported to be...
asked 1 hour ago -
Why has California been the favorite destination of large number
of secondary migrants?
asked 1 hour ago -
Do not neglect the old for the new. The existing business must
not lose priority simply...
asked 4 hours ago -
Kylie is a single mom with two dependent children,
Tanner, age 7 and Olivia, age 11....
asked 6 hours ago -
Phosphorous + bromine = phosphorous tribromide. If 35.0 g of
bromine are reacted and 27.9 grams...
asked 7 hours ago -
Derive the long wavelength limit of the Planck energy density
distribution
asked 7 hours ago -
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 11 hours ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 11 hours ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 11 hours ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 11 hours ago