Equities: Common Stock

A company's common stock is selling in the market at a "multiple of 15". If the market price of the common stock is currently $10, what is the earnings per share?

$0.67

ABC Corp. has a market price of $15 and a Price/Earnings multiple of 10. What was the corporation's Earnings Per Common Share?

$1.50

DUPA Corp. has a Price/Earnings multiple of 20 and a market price of $45. What was the corporation's Earnings Per Common Share?

$2.25

A corporation has issued 50,000,000 shares of common stock at $2 par. The corporation has 10,000,000 shares of Treasury Stock on its books. The aggregate value of the outstanding shares is:

$80,000,000

At the beginning of the year, an investor buys 1,000 shares of XYZ stock, purchased at $33 per share. Subsequently, the stock rises to $40 by the end of the year and the stock pays a $4 dividend during the year. By the end of the following year, the stock has fallen to $25 and pays the same $4 dividend. What is the stock's dividend yield?

16%

PDQ Company $10 par common stock is currently trading at $40. PDQ is currently paying a quarterly common dividend of $.90 per share. The current yield of PDQ stock is:

9%

A customer owns 1,000 common shares of ABC Corporation. Which of the following actions will dilute the shareholders' equity? ABC declares a 5% stock dividend ABC declares that it will call its convertible preferred stock, which is currently trading at a premium ABC declares that it will issue an additional $100,000,000 in bonds ABC declares a 4:1 stock split

ABC declares that it will call its convertible preferred stock, which is currently trading at a premium

All of the following actions by a corporation will affect an individual common shareholder's equity EXCEPT: Issuance of additional common shares Conversion of convertible preferred stock Repurchase of common shares Declaration of a stock dividend or stock split

Declaration of a stock dividend or stock split

The market price of common stock will be influenced by which of the following?

Expectations for future dividend payouts by the company

What term would apply to Authorized Stock?

Par Value

What term would apply to Issued Stock?

Par Value

What term would apply to Treasury Stock?

Par Value

A company's common stock is selling in the market at a "multiple of 10". If the market price of the common stock is currently $10, which statement is TRUE? A. The company has paid dividends of $1 per share this year B. The company has earnings per share of $1 this year C. The company has paid dividends of $100 per share this year D. The company has earnings per share of $100 this year

The company has earnings per share of $1 this year

To determine if a stock appears to be overpriced, what would be examined?

The company's Price to Earnings Ratio

Common stockholders do not have which right? The right to review internal Board of Director communications B. The right to maintain proportionate ownership in the company C. The right to vote for the Board of Directors D. The right to transfer of shares at will

The right to review internal Board of Director communications

The Price / Earnings Ratio is a measure of:

Valuation

An investor who wishes to vote at a company's annual meeting:

can vote by proxy

An individual would examine a company's Price to Earnings Ratio in order to:

determine if the stock is fairly valued

Common shareholders have all of the following rights EXCEPT the right to: receive a dividend if one is declared by the Board of Directors remaining assets in a liquidation of the company after all other claimants inspect the minutes of meetings of the Board of Directors vote for each individual proposed for election to the Board of Directors

inspect the minutes of meetings of the Board of Directors

The definition of Treasury stock is:

issued shares minus outstanding shares

In a corporate liquidation, common stockholders are paid:

last

Which terms describe a common stock?

negotiable and non callable

If a company repurchases its own common shares, the number of:

outstanding shares will decrease

All of the following actions will dilute shareholders' equity EXCEPT: payment of a stock dividend conversion of convertible preferred stock exercise of stock options granted to officers issuance of additional common shares

payment of a stock dividend

Common dividends are usually paid

quarterly

All of the following are methods of dividend payment EXCEPT: (cash, stock, rights, products)

rights

Voting of the common stockholder is required for all of the following EXCEPT: when a corporation declares a stock split, when a corporation declares a stock dividend, when a corporation wishes to issue convertible securities, deciding whether to accept a tender offer for the company's shares

when a corporation declares a stock dividend