course hero which of the following is true of par value of a common stock

Is the market value of common stock related to par value?

4) The market value of common stock is completely unrelated to its par value. 6) The number of authorized shares of common stock is always greater than or equal to the number of outstanding shares of common stock.

How many common shares does a firm have in excess of par?

A firm has the balance sheet accounts, Common Stock and Paid-in Capital in Excess of Par, with values of $10,000 and $250,000, respectively. The firm has 10,000 common shares outstanding. If the firm had a par value of $1, the stock originally sold for ________.

What are the characteristics of common stockholders?

2) Common stockholders are often referred to as residual claimants. 3) Common stock can be either privately owned by private investors or publicly owned by public investors. 4) The market value of common stock is completely unrelated to its par value.

How many shares of preferred stock does a firm have?

A firm has an outstanding issue of 1,000 shares of preferred stock with a $100 par value and an 8 percent annual dividend. The firm also has 5,000 shares of common stock outstanding.

What is a common stockholder called?

What is cumulative preferred stock?

Which stockholders are paid first in liquidation?

What is a D stock?

What does "c" mean in a company's voting rights?

Why is preferred stock secondary to creditors?

When do investors buy stock?

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Chapter 7 Finance Quiz Review Flashcards | Quizlet

Study with Quizlet and memorize flashcards containing terms like ________ are financial instruments that allow stockholders to purchase additional shares at a price below the market price, in direct proportion to their number of owned shares. Select one: a. Proxy statements b. Preemptive rights c. Rights offering d. Treasury stocks, Preferred stockholders ________. Select one: a. have ...

Finance Chapter 7 Practice Problems Flashcards | Quizlet

The Oxford Heating Company has been very successful in the past four years. Over these years, it paid common stock dividend of $4 in the first year, $4.20 in the second year, $4.41 in the third year, and its most recent dividend was $4.63.

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What is a common stockholder called?

2) Common stockholders are often referred to as residual claimants.

What is cumulative preferred stock?

16) Cumulative preferred stocks are preferred stocks for which all passed (unpaid) dividends in arrears must be paid along with the current dividend prior to the payment of dividends to common stockholders.

Which stockholders are paid first in liquidation?

12) In the case of liquidation, bondholders are paid first, followed by preferred stockholders, followed by common stockholders.

What is a D stock?

D) securities, backed by Securities Exchange Commission (SEC), that permit U.S. investors to hold shares of non-U.S. companies and trade them in international markets.

What does "c" mean in a company's voting rights?

C) It gives the holder voting rights which permit selection of the firm's directors.

Why is preferred stock secondary to creditors?

17) Because preferred stock is a form of ownership and has no maturity date, its claims on income and assets are secondary to those of the firm's creditors.

When do investors buy stock?

1) Investors purchase a stock when they believe that it is undervalued and sell when they feel that it is overvalued. TRUE. 2) In an efficient market, the expected return and the required return are equal. TRUE. 3) In an efficient market, stock prices adjust quickly to new public information. TRUE.

What does "c" mean in a company's voting rights?

C) It gives the holder voting rights which permit selection of the firm's directors.

Is there a seniority of preferred stockholder's claim over common stockholders?

A) There is a seniority of preferred stockholder's claim over common stockholders.

Is common stock publicly owned?

A) The common stock of a corporation can be either privately or publicly owned.

Do stocks have a stated maturity?

C) Stocks have a stated maturity but bonds do not.

What is a common stockholder called?

2) Common stockholders are often referred to as residual claimants.

What is cumulative preferred stock?

16) Cumulative preferred stocks are preferred stocks for which all passed (unpaid) dividends in arrears must be paid along with the current dividend prior to the payment of dividends to common stockholders.

Which stockholders are paid first in liquidation?

12) In the case of liquidation, bondholders are paid first, followed by preferred stockholders, followed by common stockholders.

What is a D stock?

D) securities, backed by Securities Exchange Commission (SEC), that permit U.S. investors to hold shares of non-U.S. companies and trade them in international markets.

What does "c" mean in a company's voting rights?

C) It gives the holder voting rights which permit selection of the firm's directors.

Why is preferred stock secondary to creditors?

17) Because preferred stock is a form of ownership and has no maturity date, its claims on income and assets are secondary to those of the firm's creditors.

When do investors buy stock?

1) Investors purchase a stock when they believe that it is undervalued and sell when they feel that it is overvalued. TRUE. 2) In an efficient market, the expected return and the required return are equal. TRUE. 3) In an efficient market, stock prices adjust quickly to new public information. TRUE.