What is the expected dividend yield of a stock?
A stock's next expected dividend divided by the current stock price is the: Dividend yield. The rate at which the stock price is expected to appreciate (or depreciate) is the: Capital gains yield. Equity without priority for dividends or in the event of bankruptcy is called: Common stock.
How are the assets divided among the firm's divisions?
The firm's assets are divided equally (both in terms of market value and book value) among the three divisions. What is the beta of the firm? Your portfolio is comprised of 25% of stock X, 65% of stock Y, and 10% of stock Z. Stock X has a beta of.79, stock Y has a beta of 1.23, and stock Z has a beta of 1.47.
What is the anticipated growth rate in dividends and earnings?
The anticipated growth rate in dividends and earnings is 25% for the next 2 years before settling down to a constant 5% growth rate. The discount rate is 12%. Calculate the expected price of the stock. A. $15.38 B. $20.50 C. $21.04 D. $22.27
When a stock is combined into a portfolio the standard deviation?
When a stock is combined into a portfolio, the standard deviation of that portfolio remains unchanged. E. There is no limit to the amount of risk that can be eliminated through diversification. Which of the following is true concerning diversification?
What is preference dividend?
What Is a Preferred Dividend? A preferred dividend is a dividend that is allocated to and paid on a company's preferred shares. If a company is unable to pay all dividends, claims to preferred dividends take precedence over claims to dividends that are paid on common shares.
What stock receives no preferential treatment?
Answer and Explanation: The answer is e). Common stock investors (or common equity shareholders) are also called residual claimant.
Where can I find preferred dividends?
Common stock dividends carry no such provision and are declared after year-end by a Board of Directors. Preferred stock rates and terms are displayed on the balance sheet or in the notes relating thereto.
Do preference shares get dividends?
Preference shareholders receive dividend payments before common shareholders. Preference shareholders do not enjoy voting rights like their common shareholder counterparts do. Companies incur higher issuing costs with preferred shares than they do when issuing debt.
WHAT IS convertible preferred equity?
What Is Convertible Preferred Stock? Convertible preferred stocks are preferred shares that include an option for the holder to convert the shares into a fixed number of common shares after a predetermined date.
What is preference shares and its types?
Preferred shares are a hybrid form of equity that includes debt-like features such as a guaranteed dividend. The four main types of preference shares are callable shares, convertible shares, cumulative shares, and participatory shares.
What is equity dividend?
Equity income primarily refers to income from stock dividends, which are cash payments from companies to their shareholders as a reward for investing in their stock. In other words, equity income investments are those known to pay dividend distributions.
How do you receive dividends?
To be eligible for dividends, you need to be holding the stock in your demat account on the record date of the dividend issue. You should have bought the stock at least one day before the ex-date so that the stocks are delivered in your demat account by the record date.
How are dividends treated in financial statements?
When the dividends are paid, the effect on the balance sheet is a decrease in the company's retained earnings and its cash balance. In other words, retained earnings and cash are reduced by the total value of the dividend.
What is preferential equity?
Preference shares, more commonly referred to as preferred stock, are shares of a company's stock with dividends that are paid out to shareholders before common stock dividends are issued. If the company enters bankruptcy, preferred stockholders are entitled to be paid from company assets before common stockholders.
What is equity preference share?
Equity shares represent the ownership of a company. While preference shares have preferential rights to the company's profits and assets. Also, the major difference between equity and preference shares is the voting rights and claim over the company's dividends and assets.
What are the types of equity shares?
Following are the different types of Equity Shares:Ordinary Shares. Ordinary shares are those shares a company issues to raise funds to meet long term expenses. ... Preference Shares. ... Bonus Shares. ... Rights Shares. ... Sweat Equity. ... Employee Stock Options (ESOPs) ... Authorized Share Capital. ... Issued Share Capital.More items...•
Answer
A form of equity which receives no preferential treatment in either the payment of dividends or in bankruptcy distributions is called preferred stock.
New questions in Business
Diego owns 1,000 shares of Carmen. If Carmen Company issues an additional 100,000 shares of common stock, how many additional shares does Diego have t …