Question

“Shareholders of corporate stock may have claims to a company’s assets and income.”  Discuss and analyse this...

“Shareholders of corporate stock may have claims to a company’s assets and income.”  Discuss and analyse this quote

Homework Answers

Answer #1

Shareholders claim in company assets : in case of winding up of the company shareholders have their claim on realisation from the company assets but from the realisation of company assets first secured debt holders are paid then non secured debt holders trade liabilities after that balance amount is distributed to shareholders

Claim in earnings : share holders have their claim in earnings by way of dividends but in earnings also interest on debetures is paid then dividend to preferred shares are paid later dividend is paid after considering reinventment

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
''Shareholders of corporate stock may have claims to a company’s assets and income.” Discuss and analyze...
''Shareholders of corporate stock may have claims to a company’s assets and income.” Discuss and analyze this quote.
A corporation's shareholders can have their personal assets used to fulfill corporate debt if: all of...
A corporation's shareholders can have their personal assets used to fulfill corporate debt if: all of the answers are correct. the shareholders and directors operate separately. the corporation is not operating as a separate entity from the shareholders. the corporation's annual profits fall below a specified amount.
Discuss some possible impacts on corporate performance of agency conflict between shareholders and management. Distinguish between...
Discuss some possible impacts on corporate performance of agency conflict between shareholders and management. Distinguish between the financial objectives of a right issue and a bonus issue
Discuss how corporate tax and individual income tax affect corporate dividend policy
Discuss how corporate tax and individual income tax affect corporate dividend policy
Puce has two individual shareholders, Abram and Carmella. The shareholders purchased their stock in Puce four...
Puce has two individual shareholders, Abram and Carmella. The shareholders purchased their stock in Puce four years ago at a cost of $500,000 each. For the past nine years, Puce has been engaged in two lines of business, manufacturing and wholesale distribution. Puce also owns substantial investments that it has held for at least six years. For liability protection, Puce would like to segregate its businesses by placing wholesale distribution into one corporation and manufacturing into another corporation. Puce would...
Which of the following statements describes the corporate characteristic termed double taxation? A) The liabilities of...
Which of the following statements describes the corporate characteristic termed double taxation? A) The liabilities of the corporation cannot be extended to the personal assets of the shareholder. B) Shares of stock can be readily bought and sold by investors on the open market. C) Shareholders are not authorized to sign contracts or make business commitments on behalf of the corporation D) Corporations pay income tax on corporate earnings, and shareholders pay personal income tax on corporate dividends and gains...
Discuss the reasons why a corporate bond with restrictive covenants may trade at a different yield...
Discuss the reasons why a corporate bond with restrictive covenants may trade at a different yield to a callable bond issued by another company
Bonds that may be exchanged for common stock at the option of the bondholders are called...
Bonds that may be exchanged for common stock at the option of the bondholders are called a. options. b. stock bonds. c. convertible bonds. d. callable bonds. Secured bonds are bonds that a. are in the possession of a bank. b. are registered in the name of the owner. c. have specific assets of the issuer pledged as collateral. d. have detachable interest coupons. Which of the following is not an advantage of issuing bonds instead of common stock? a....
Which one of the following statements about income is correct? Group of answer choices Income may...
Which one of the following statements about income is correct? Group of answer choices Income may arise when there is control over the increase in economic benefits. Income may arise from the recognition of an increase in the value of assets. Income can be in the form of decreases of liabilities. Increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.
The management of BTR Warehousing controls 58% of the company’s stock. The firm did not meet...
The management of BTR Warehousing controls 58% of the company’s stock. The firm did not meet any of its quarterly sales projections for the last year. Some of the firm’s institutional investors are worried that the firm’s poor performance is partly because management has not been focused on maximizing shareholder wealth. Which of the following measures would the institutional investors most likely want to see implemented? A. They would like to see that the company has an interlocking board of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT