4. Equities and Corporate Securities
- 4. Equities and Corporate Securities
Last Modified: 2013-06-15
Which of the following statements regarding a 2-for-1 stock split are TRUE?
- The share price is reduced by half.
- The total market value of the outstanding stock decreases.
- The total market value of the outstanding stock may increase or decrease as a result of the split.
- The number of shares doubles.
XYZ Corporation has 2,000,000 shares of common stock authorized. The company has issued 1,000,000 common shares of which 200,000 shares are treasury stock. The company has earnings of $2.00 per share. The XYZ Corporation has repurchased:
Foremost Corporation has declared a quarterly dividend of 25 cents payable to stockholders of record on Friday, December 1st. The dividend would be paid to all stockholders whose name appeared on the record books of Foremost Corporation on:
The dividend would be paid to all stockholders whose name appeared on the record books of Foremost Corporation on:
A company declares a forward stock split. What is the effect on the stock's par value?
ABC, Inc. will issue new stock through a rights offering. Terms of the offering are 10 rights plus $10 to purchase one new share of stock, with any fractional shares to be considered whole shares. ABC is currently trading at $13. If your customer owns 85 shares of ABC and wishes to subscribe to the new offering, how many shares can she purchase at the subscription price and how much money will be required?
A) 9 shares; $80. B) 8 shares; $90. C) 9 shares; $90
D. 8 shares $80
Your answer, 9 shares; $90., was correct!.
Warrants would most likely be issued to:
A corporation has a 9% cumulative preferred stock issue outstanding. The company paid a $7 dividend in 2002 and $8 in 2003. If the company wants to pay a common stock dividend in 2004, the cumulative preferred stockholders must first receive a dividend of:
A notice is published stating that RMO 5% convertible preferred stock will be called at $60 per share. The preferred is convertible into 1/2 share of common and is selling in the market at $56 per share. RMO common stock is selling in the market at $110 per share. After the notice appears, the price of the preferred stock will most likely trade in the market at:
An investor owns 280 shares of XYZ Corporation. XYZ Corporation pays a 15 cents quarterly dividend. XYZ Corporation announces a 5-for-4 split. The dividend per share is adjusted to reflect the split. How much will the investor receive in dividends each quarter after the split?
XYZ corporation has 7,000,000 shares of common stock ($1 par value) authorized of which 5,000,000 shares have been issued. There are 500,000 shares of treasury stock. The current market price of XYZ is 20. The value of the outstanding common stock on the balance sheet is:
The value of the outstanding common stock on the balance sheet is:
A brokerage firm's research department has issued a buy recommendation on XYZ Corporation common stock. The report must contain all of the following information, EXCEPT:
All of the following are TRUE about "stopping stock" on the NYSE, EXCEPT that it:
A stock trades ex-dividend on Monday the 20th. What is the last day an investor can purchase the stock and be entitled to the dividend?
ABC Corporation has declared a record date of Thursday, May 17, for its next quarterly cash dividend. When is the last day the investor may purchase the stock regular way and receive the dividend?A)Thursday, May 17. B)Monday, May 14. C)Tuesday, May 15. D)Wednesday, May 16.
As far as rights offerings are concerned:
A client has 100 shares of GHI when the stock undergoes a split. After the split, the client has:A)a proportionately increased interest in the company. B)greater exposure. C)a proportionately decreased interest in the company. D)no effective change in the value of the position.
An investor owns a $100 convertible preferred stock which is convertible into 2 shares of common stock. The common is selling at $52 and the preferred is selling at $104. The preferred stock is called at 105. What should the investor do?
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