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Which of the following are income tax deductible items to a corporation Common stock dividends preffered stock dvidends retained earnings or Bond interest expenses?
Interest expenses are tax deductible.
Should you invest in Bank of America stock?
If you have at least a five year time horizon, you will most likely make money. The stock could do very well if interest rates move up. The stock will not do very well if interest rates stay at zero. Odds are that interest rates will eventually rise.
Similarities of perpetual bond and no-growth common stock?
no growth in the value and pay interest forever
What is the cheapest and most important source of equity capital in a firm?
5. , the cheapest source of capital is debt. Whereas the most expensive source of capital is common stock. Because common stock holders do share the actual profit earned from the operation of a business. But when it comes to bonds, they are simply stated in terms of interest. Besides the ownership interest in common stock will make it more expensive while vice versa is for debt.
What may affect the investment decision when interest rate going up?
advantage and disadvantage of holding common stock of a corporation
Suppose interest rates on treasury bonds rose from 5 to 9 percent as a result of higher interest rates in Europe what effect would this have on the price of an average company's common stock?
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How does preferred stock differ from common stock?
pay dividend before common stock
What is stock interest?
If you invest enough money and you keep it with that company for a while then it earns a "stock interest" meaning that you get a little extra when you sell.
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 are the journal entries to record the exchange of common stock?
debit common stock of one typecredit common stock of other type
Is common stock a debit or a credit?
Common Stock is a Credit. Closing Stock is a Debit.
What does Convertible Loan Stock mean?
Common or preferred stock shares that are used as collateral to secure a loan from another party. The loan will earn a fixed interest rate, much like a standard loan, and can be secured or unsecured. A secured loan stock may also be called a convertible loan stock if the loan stock can be directly converted to common shares under specified conditions and with a pre-determined conversion rate, as with an irredeemable convertible unsecured loan stock(ICULS).
