An offering of a new issue of shares to existing shareholders who may purchase new shares in proportion to their current ownership position is known as a: Select one: a. Rights issue b. Initial Public Offering (IPO) c. Dividend Reinvestment Plan (DRP) d. Private Placement
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An offering of a new issue of shares to existing shareholders who may purchase new shares in proportion to their current ownership position is known as a:
Rights issue
Initial Public Offering (IPO)
Dividend Reinvestment Plan (DRP)
Private Placement
Step by step
Solved in 3 steps
- Which of the following methods of valuing shares will be most appropriate for a prospective investor who intends acquiring controlling interest in a target company?A Earnings YieldB Dividend YieldC Net assetsD Accounting Rate of ReturnThe Issue of share of a company to only investors of our choice is known as; a. Offer for sale b. Right issues c. Public issue d. Private PlacementRedeemable preference shares will be shown under: a. Equity in the statement of financial position b. Non current liability in the statement of financial position c. Current asset in the statement of financial position d. Current liability in the statement of financial position
- Subscriptions receivable from sale of shares which are not collectible currently shall be presented asRequired to answer. Single choice. a. current assets b. deduction from the related subscribed share capital in the shareholder's equity section c. long-term investment d. other asset..What account should be debited when stock issuance costs are associated with the initial issuance of stock at incorporation? Group of answer choices a. Organization Expense b. Additional Paid-in Capital c. Organization Costs d. Common stockThe entry to record the reissuance of treasury shares above their original acquisition cost includes Select the correct response: a debit to share premium O a debit to retained earnings a credit to share premium a debit to both share premium and retained earnings
- Which of the following is issued to shareholders to acquired unissued or treasury shares within a specified tie period at a specified price?a. Share optionb. Share warrantc. Stock dividendd. Share subscriptionWhich of the following information from the minutes of meetings would most likely affect the retained earnings account? Group of answer choices Declaration of a share-split Treasury shares acquisition Payment of an outstanding cash dividend Conversion of preference shares to ordinary sharesIdentify which category of shareholder's equity is affected by the item and briefly explain how it affected. 1. Purchase treasury shares (cost method)
- Match each of the following preferred stock features with its description.Preferred Stock Features Description 1. Convertible a. Prior unpaid dividends receive priority. 2. Redeemable b. Shares can be sold at a predetermined price. 3. Cumulative c. Shares can be exchanged for common stock.Repurchased shares which a company has bought back from stockholders with the intention of reissuing at a later date are known as: Select one: a. capital shares. b. treasury shares. c. inventory shares. d. unissued shares. e. preferred shares.Which of the following can not be used for redemption of preference shares? A. Insurance Fund B. Workmen's Compensation Fund C. General Reserve D. Profit Prior to Incorporation