Net Income was $720,000.
1,000,000 shares of common stock were outstanding on January 1.
1,000 shares of eight percent, $1,000 par value preferred shares were outstanding on
January 1 and dividends were paid in 2001.
The tax rate was 40 percent.
Dividends were paid in 2001.
The average market price per share was $20 in 2001.
6,000 shares of three percent $500 par value preferred shares, convertible into common
shares at a rate of 30 common shares for each preferred share, were outstanding for the entire
year.
Able 抯 diluted earnings per share (Diluted EPS) for 2001 was closest to:
A.$0.55.
B.$0.65.
C.$0.66.
D.$0.54.
听力原文:M: Professor Wang, could you tell me the advantage of the preferred shares?
W: Preferred shares have certain rights, such as the preferred right to receive dividends before any ordinary dividends maybe declared.
Q: When do preferred shareholders have right to receive dividends?
(17)
A.Before any ordinary dividends are declared.
B.After any ordinary dividends are declared.
C.Before any ordinary dividends are paid.
D.After any ordinary dividends are paid.
A.¥7.00 per shar
B.¥6.00 per shar
C.¥12.04 per shar
D.¥12.60 per shar
E.
A.Issued stock.
B.Outstanding stock.
C.Common stock.
D.Preferred stock.
E.Authorized stock.
A、$10,000
B、$30,000
C、$20,000
D、$15,000
A、Planning to issue common stock rather than issuing preferred stock
B、Repurchasing shares of common stock
C、Issuing debt in the form of long-term bonds
D、Deciding to expand into a new line of products, at a cost of $5 million
【单选题】Davidson Corporation had the following transactions: (1) Issued five million shares of $2 par value preferred stock at a price of $10. (2) Purchased 100000 shares of its own common stock as treasury stock at a market parice of $35 Use the balance sheet equation to analyze the financial statement effects of these transactions and set up the following columns; cash, preferred stock, additional paid-in capital, common stock, and treasury stock.
A、Assets = Liabilities + Owner’s equity (1) Cash Preferred Stock Additional paid-in Capital 50,000,000 10,000,000 40,000,000 (2) Cash Treasury stock -3,500,000 -3,500,000
B、Assets = Liabilities + Owner’s equity (1) Cash Preferred Stock Additional paid-in Capital 40,000,000 10,000,000 40,000,000 (2) Cash Treasury stock -3,500,000 -3,500,000
C、Assets = Liabilities + Owner’s equity (1) Cash Preferred Stock Additional paid-in Capital 10,000,000 10,000,000 40,000,000 (2) Cash Treasury stock -3,500,000 -3,500,000
D、None of the above.
?Read the article below about common Stock and Preferred Stock and the questions.
?For each question (13-18), mark one letter (A, B, C or D)
Common Stock and preferred Stock
A public corporation issues certificates of ownership, called common stock, which may be traded on stock exchanges.Anyone can buy and sell shares of common stock.Owners of stock are referred to as shareholders and stockholders. common stockholders are accorded certain rights by the corporate charter.In the United States, these rights vary from state to state, but in general the articles of incorporation spell out voting rights and rights to receive profits.
Common stockholders are the voting owners of a corporation.They are usually entitled to one vote per share.They may vote on numerous issues affecting the corporation (including a decision to sell or merge with another corporation) and elect a board of directors, who, in turn, hire managers to run the business.A majority shareholder is one who owns over 50 percent of the outstanding shares in a corporation and, thus, can call the shots.All other shareholders are minority shareholders.In large corporations no single person or organization owns anywhere near a majority interest.In large, publicly owned corporations a shareholder with as little as 10 percent of the shares may control the corporation effectively.If things go bad, a coalition of so called dissident shareholders may gather enough votes to replace the existing board of directors; the new board may fire the existing management and bring in their own management team.
Although common stock represents ownership in a company, it does not guarantee the owners a specified rate of return.As owners, the stockholders receive profits after all expenses, including debts and taxes, have been paid. They receive profits from the business in the form. of dividend payments, which represent a percentage of profits.Not all after-tax profits are paid to the stockholders in dividends.Directors usually decide quarterly how much, if any, if the profits they wish to distributed to the owners. The profits are either distributed to the owners in dividends or they are reinvested bank into the company in the form. of retained earnings.If the company decides to keep the profits, the company may become more valuable and the price of the stock usually goes up.Some investors prefer profits in the way of dividends while others speculate for an increase in the price of stock.If a company goes broke, common stockholders get last claim on whatever is left over.
Corporations may also issue preferred stock to investors.Preferred stock usually has no vote in the election of the board of directors, but does get preference in the distribution of the company's earnings.It offers investors a different type pf security and may be issued only after common stock had been issued.The term "preferred" applies to two conditions.First, preferred stockholders gain preferential treatment in the matter of dividends; that is, they receive a fixed rate of dividends prior to the payment of dividends on common shares.Second, if the company goes out of business or liquidates, preferred stockholders are closer to the front of the line than common stockholders when distributing the company's assets.
Dividends to preferred stock may be cumulative or noncumulative.cumulative preferred stock maintained its claim to dividends even if the company had a bad year in 1994, they might decide not to pay dividends.But if they had a good year in 1995, and declared stock dividends do not accumulate.If dividends are not declared, noncumulative owners lose their claim to the profit of that period.
In short, common stock usually has more control through voting privileges, gre
A.the voting rights the stockholders have.
B.the stock shared by common people.
C.the profits the shareholders receive.
D.the ownership of a public corporation.
?Read the article below about common stock and preferred stock.
?For each question 13-18, mark one letter (A, B, C or D) on your Answer Sheet, for the answer you choose.
Common Stock and Preferred Stock
A public corporation issues certificates of ownership, called common stock, that may be traded on stock exchanges. Anyone can buy and sell shares of common stock. Owners of stock are referred to as shareholders and stockholders. Common stockholders are accorded certain rights by the corporate charter. In the United States, these rights vary from state to state, but in general the articles of incorporation spell out voting rights and rights to receive profits.
Common stockholders are the voting owners of a corporation. They are usually entitled to one vote per share. They may vote on numerous decisions affecting the corporation (including a derision to sell or merge with another corporation) and elect a board of directors, who, in turn, hire managers to run the business. A majority shareholder is one who owns over 50 percent of the outstanding (issued) shares in a corporation and, thus, can call the shots. All other shareholders are minority shareholders. In large corporations no single person or organization owns anywhere near a majority interest. In large, publicly owned corporations a shareholder with as little as 10 percent of the shares may control the corporation effectively. If things go badly, a coalition of so called dissident shareholders may gather enough votes to replace the existing board of directors; the new hoard may fire the existing management and bring in their own management team.
Although common stock represents ownership in a company, it does not guarantee the owners a specific rate of return. As owners, the stockholders receive profits after all expenses, including debts and taxes, have been paid. They receive profits from the business in the form. of dividend payments, which represent a percent-age of profits. Not all after-tax profits are paid to the stockholders in dividends. Directors usually deride quarterly how much, if any, of the profits they wish to distribute to the owners. The profits are either distributed to the owners in dividends or they are reinvested back into the company in the form. of retained earnings. If the company decides to keep the profits, the company may become more valuable and the price of the stock usually goes up. Some investors prefer profits in the way of dividends while others speculate for an increase in the price of stock. If a company goes broken, common stockholders get last claim on whatever is left over.
Corporations may also issue preferred stock to investors. Preferred stock usually has no vote in the election of the bard of directors, but does get preference in the distribution of the company's earnings. It offers investors a different type of security and may be issued only after common stock has been issued. The term "preferred" applies to two conditions. First, preferred stockholders gain preferential treatment in the matter of dividends; that is, they receive a fixed rate of dividends prior to the payment of dividends on common shares. Second, if the company goes out of business or liquidates, pregerred stockholders are closer to the front of the line than common stockholders! when distributing the company's assets.
Dividends to preferred stock may be cumulative or noncumulative. Cumulative preferred stock maintains its claim to dividends even if the company decides not to pay them. For instance, if the company had a bad year in 1994, they might decide not to pay dividends. But if they had a good year in 1995. noncumulative preferred stock dividends do not accumulate. If dividends are not declared, noncumulative owners lose their claim to the profit of tha
A.the voting rights the stockholders have
B.the stock shared by common people
C.the profits the shareholders receive
D.the ownership of a public corporation
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