If a company repurchases shares, then the proportionate shareholdings of shareholders who do NOT participate
A.
rises.
B.
falls.
C.
stays the same.
The answer is
A.Rises
When a company repurchases shares, the total number of shares outstanding reduces. Hence, the proportionate shareholdings of shareholders who do NOT participate rises since they continue to hold same number of shares
If a company repurchases shares, then the proportionate shareholdings of shareholders who do NOT participate A....
A dividend is a distribution of profit by a company to its shareholders on a(n): proportionate basis. declaration basis. profit basis. asset basis.
The preemptive right gives shareholders the right _____________. a to maintain their proportionate ownership in the corporation when new common stock is issued b to sell their share of stock at a premium in the event of liquidation c to give up their vote to another party if they do not attend the annual meeting d to cast one vote for each share owned at the annual meeting of the company
Your friend has thought about repurchases of common stock by the issuing company and has concluded that this is unethical. Specifically, this friend says that the company knows more than you do and if the company decides to repurchase shares, it is taking advantage of shareholders. How do you respond?
Shareholders who sell their shares back to the company under a share repurchase program are: Multiple Choice not taxed. taxed at ordinary rates. taxed at capital gains rates. subject to tax penalties
Princess Company has the following shareholders' equity on its balance sheet: Shareholders' Equity Preferred shares, $9 cumulative, 4,000 issued and outstanding Common shares, 50,000 issued and outstanding Retained earnings Total shareholders' equity 4. $400,000 2,600,000 460,000 3,460,000 a. Calculate the total annual preferred dividend entitlement b. Calculate the total amount of contributed capital. c. If the company paid total dividends of S120,000 in the year, and there were no preferred dividends owing from past years, how much did the common...
4. (Dividends and share repurchases: Basics) Devon Ltd. common shares sell at $40 a share and their estimated price-to-earnings ratio (P/E) is 32. If Devon borrows funds to repurchase shares at its after-tax cost of debt of 5%, its EPS is most likely to: (a) increase (b) decrease (c) remain the same
The shareholders of the Pickwick Paper Company need to elect eight directors. There are 260,000 shares outstanding. a. How many shares do you need to own to ensure that you can elect at least one director if the company has majority voting? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Number of shares needed b. How many shares do you need to own to ensure that you can elect at least one director if...
pls help
Income Assets/Wealth/Savings Amy $10 None Bart $10 $10 Cash Carla $10 10 shares IBM stock For all the problems below, assume that people will spend all of their income and 20% of the value of their assets on buying widgets during the year. When all prices rise in this model, what happens to the total amount of widgets purchased? Circle the letter of the best answer. a. Rises. b. Falls. c. Stays the same. 4. When all prices...
The degree to which the test scores of students who participate in tutoring sessions differ from the scores of students who do not participate is an indication of: A. effect size B. Experimental correctness C. The significance level D. Power
What is democracy? Who do you think should participate and why or why not? Do you think the United States is a democracy now or has it ever been a democracy?