Exam 13: Planning Equity Financing

The date which determines eligibility to receive a corporate dividend is the:

During the current year,Jacob,Alicia,and Shawn,who are partners in the JAS Company,had average capital balances of $57,000,$49,000,and $64,000,respectively.The partners share profits and losses by allowing a 12% return on average capital,with any remaining income or loss divided in a ratio of 5:3:2.If the company's income for the current year was $73,800,Shawn's capital account would increase by:

Which of the following is not a right of common stockholders?

Zathras Corporation has 2,000,000,$1 par shares of common stock authorized.A total of 800,000 shares have been sold to stockholders and 40,000 shares have been repurchased by the firm and retired.How many issued and outstanding shares does Zathras have? Issued Outstanding

Callisto began 2000 with 100,000 shares of $3 par common stock.The firm declared a 3-for-1 stock split on March 1,2010.How will the stock split affect Callisto's stockholders' equity?

Which of the following computations will determine the number of shares of treasury stock?

Which of the following statements is true about the debt to equity ratio?

What does the combination of the debt to equity ratio and the times interest earned ratio tell analyst.

When employing a strategy of financial leverage:

Ketek,Inc.has $400,000 in assets and one liability in the form of a $150,000 note payable with a 12% annual interest rate.Assuming Ketek's tax rate is 30% and the firm generates a 15% return on its assets,Ketek's rate of return on owners' equity is:

Nutritech Corporation has 500,000 shares of 7.5%,$100 par value cumulative preferred stock issued with 45,000 shares issued and 40,000 outstanding,as well as 275,000 shares of $1 par value common stock issued and 250,000 shares outstanding.Dividends relative to the preferred stock are three years in arrears.If Nutritech declares a $2,887,500 dividend during the current period,the per share dividend applicable to the preferred and common stockholders is:

In a 2 for 1 stock split,the number of shares held by a stockholder will:

What is par value? Why do corporations usually select a low par value?

Which of the following ownership structures requires only the negligent owner to have unlimited liability?

Preferred stock for which unpaid dividends must be paid before dividends can be paid to common stockholders is referred to as

Which of the following is true about the characteristics of a corporation?

Mutt and Jeff could not agree on how to share the profits and losses of their partnership.In this case,the law would require that partnership profits and losses be divided:

Gibraltar Corporation has 200,000 shares of 9%,$50 par value cumulative preferred stock authorized,80,000 shares issued,and 75,000 outstanding,as well as 300,000 shares of $10 par value common stock issued and outstanding.Dividends relative to the preferred stock are two years in arrears.If Gibraltar declares a $2,137,500 dividend during the current period,the amount of the dividend applicable to the preferred and common stockholders is:

Reinvestment of a firm's earnings in the firm is a type of:

Which of the following statements is not true about the times-interest-earned ratio?