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no growth in the value and pay interest forever
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∙ 10y ago
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What are the similarities of common and preferred stock?
They are about same except, prefer get money before common
How does preferred stock differ from common stock?
pay dividend before common stock
Can common stocks become preferred stocks?
Yes if there is a clause while issuing common stock that stock holder can convert the common stock to preffered stock.
Is capital stock the same as common stock?
Yes
What has the higher return preferred stock or common stock?
Dividend on common stock has to be more than dividend on preferred stock because of higher risk involved in equity investments.
How is a perpetual bond and a no-growth common stock the same?
Neither have a maturity date.
What are the similarities of common and preferred stock?
They are about same except, prefer get money before common
What is perpetual and periodic stock taking method?
this is where stock taking is done continously
The constant growth model used for evaluating the price of a share of common stock may also be used to find the price of perpetual preferred stock or any other perpetuity?
True
What are the main methods of checking stock?
3 basic methods for checking stock:lContinuous / perpetual stock checkinglPeriodic stock checkinglSpot checking
Methods of stock taking?
Annual stock taking-done once a year and it si done for the purpose of preparing financial accounts. Spot cheecking Perpetual stock taking
What is the purpose of physical stock taking of the perpetual system?
The purpose of physical stock-taking is to be up to date on how much stock and materials the company has on things. It is a means to maintain knowledge of your inventory.
Tunney Industires can issue perpetual preferred stock at a price of 47.50 per share The stock would pay a constant annual dividend of 3.80 a share What is the company's cost of preferred stock?
.80
How does preferred stock differ from common stock?
pay dividend before common stock
Can common stocks become preferred stocks?
Yes if there is a clause while issuing common stock that stock holder can convert the common stock to preffered stock.
What is perpetual stock- taking?
It is the use of record card for each item of stocks that shows the balance in hand after each transaction.
What are the journal entries to record the exchange of common stock?
debit common stock of one typecredit common stock of other type
