An unsecured bond in which payment to the holder will occur only after designated senior unsecured bond holders are satisfied.
What is DEBENTURE?
100
The basic claim that common stockholders have to income that is not paid out to creditors or preferred stockholders.
What is RESIDUAL CLAIM TO INCOME?
100
The rate of return that the corporation can achieve on retained earnings for the benefit of stockholders, that is then compared to what stockholders could earn if the funds were paid to them in dividends.
What is MARGINAL PRINCIPAL OF RETAINED EARNINGS?
100
Garland Corporation has a $1,000 par value bond oustanding with a $90 annual interest payment, a market price of $820, and a maturity-date in five years.
Calculate current rate. (round to 2 decimal points)
10.98%?
100
Sewell Ent. earned $160 million last year and retained $100 million.
What is the payout ratio?
What is 37.5%
200
This is an actual interest rate on the bond, usually paid in semiannual installments.
What is COUPON RATE?
200
Allowes shareholders more than one vote per share. This system enables minority shareholders to elect directors even though they do not have 51 percent of the vote.
What is CUMULATIVE VOTING
200
Amount equeal to retained earnings.
What is LEGAL LIMITS FOR DIVIDENDS?
200
Diploma Mills has $30 million in earnings, pays $4.25 million in interest to bondholders, and $2.95 million in dividends to preferred stockholders.
Calculate the common stockholder's residual claims to earnings?
What is $22.8 million?
200
The relationship between price and quantity demanded.
What is INVERSE RELATIONSHIP
300
A provision that allows the corporation to retire of force in the bebt issue before maturity.
What is CALL PROVISION?
300
The right of current common stockholders to maintain their ownership percentage on new issues of common stock.
What is PREEMPTIVE RIGHT?
300
Amount equal to the cash balance.
What is PRACTICAL LIMIT ON DIVIDENDS?
300
How many directors can Mr. X elect under cumulative voting is there are 10 board directors to be elected, 77,000 shares outstanding, and Mr. X controls 7,001 shares?
What is 1 DIRECTOR?
300
The outward movement of the demand curve.
What is INCREASE IN DEMAND?
400
Stated interest payment divided by the current price of the bond.
What is CURRENT YIELD?
400
A situation in which the purchase of a share of common stock includes a right attached to the stock.
What is RIGHTS-ON?
400
Dividend per share divided by the current stock price.
What is DIVIDEND YIELD?
400
Neil Diamond reported earnings per share of $4.00 and paid $0.90 in dividends. What is the payout ratio?
What is 22.5%
400
Number of periods.
What is n?
500
A short-term, non-binding obligation that is easily cancellable.
What is OPERATING LEASE?
500
A strategy that makes a firm unattractive as a potential takeover candidate.
What is POISON PILL.
500
Date when dividend checks are sent out to entitled stockholders.
What is DIVIDEND PAYMENT DATE
500
Polycom Systems earned $480 million last year and paid out 20% of earnins in dividends.
How much did the company's retained earnings increased?
What is $384 million?
500
Difference between present value of inflows and present value of outflows.