Question :
91. Which of the following is/are true regarding stock rights? A. Firms grant : 1230390
91. Which of the following is/are true regarding stock rights?
A. Firms grant stock rights to current shareholders.
B. Firms often issue stock rights to raise new capital from current shareholders.
C. Shareholders may exercise the stock rights or sell them to others.
D. The granting of stock rights to current shareholders requires no accounting entries.
E. all of the above
92. Which of the following is/are true regarding stock rights?
A. U.S. GAAP does not require recognition of the rights on the date of the grant.
B. Firms often issue stock rights to raise new capital from current shareholders.
C. Shareholders may exercise the stock rights or sell them to others.
D. IFRS does not require recognition of the rights on the date of the grant.
E. all of the above
93. Which of the following is not true regarding stock rights?
A. U.S. GAAP does not require recognition of the rights on the date of the grant.
B. Firms often issue stock rights to raise new capital from current employees.
C. Shareholders may exercise the stock rights or sell them to others.
D. IFRS does not require recognition of the rights on the date of the grant.
E. When holders exercise the stock rights, the firm records the issue of shares at the price paid just as it records the issue of new shares for cash.
94. Which of the following is not true regarding stock rights?
A. U.S. GAAP does not require recognition of the rights on the date of the grant.
B. The granting of stock rights to current shareholders requires several accounting entries.
C. Shareholders may exercise the stock rights or sell them to others.
D. IFRS does not require recognition of the rights on the date of the grant.
E. When holders exercise the stock rights, the firm records the issue of shares at the price paid just as it records the issue of new shares for cash.
95. Which of the following is/are not true?
A. Stock rights give their holder the right to acquire shares of stock at a specified price.
B. Firms grant stock rights to current shareholders.
C. Shareholders may exercise the stock rights or sell them to others.
D. The stock rights usually trade in public markets.
E. Employees receive stock rights as a form of compensation.
96. Which of the following is/are true regarding stock warrants?
A. Firms issue stock warrants to the general investing public for cash or attached to bonds.
B. Holders of a bond or preferred stock with common stock warrants attached can detach and redeem the warrants separately from the bond or preferred stock.
C. Holders of a bond or preferred stock with common stock warrants attached receives
periodic interest or preferred dividends and holds a call option to purchase common shares.
D. U.S. GAAP and IFRS require the firm to measure the fair value of the stock warrants separately from the value of the associated bond or preferred stock and allocate the issue price between the two securities.
E. all of the above.
97. Which of the following is not true regarding stock warrants?
A. Firms issue stock warrants to the general investing public for cash or attached to bonds.
B. Holders of a bond or preferred stock with common stock warrants attached can detach and redeem the warrants separately from the bond or preferred stock.
C. Holders of a bond or preferred stock with common stock warrants attached receives periodic interest or preferred dividends and holds a call option to purchase common shares.
D. U.S. GAAP and IFRS require the firm to measure the fair value of the stock warrants separately from the value of the associated bond or preferred stock and allocate the issue price between the two securities.
E. Firms issue stock warrants to their employees for cash or attached to bonds.
98. In most cases, U.S. GAAP requires firms to allocate the full issue price of Convertible Bonds or Convertible Preferred Stock
A. to the bonds or preferred stock and none of the price to the conversion feature.
B. to the bonds or preferred stock and the conversion feature based on fair values.
C. to the bonds or preferred stock and the conversion feature based on the present value of future cash flows.
D. to the bonds or preferred stock and the conversion feature based on the future value of present cash flows.
E. to the price to the conversion feature and none to the bonds or preferred stock.
99. Which of the following is/are true concerning convertible bonds or convertible preferred stock?
A. Convertible bonds and convertible preferred stock permit the owner either to hold the security as a bond or preferred stock or to convert the security into shares of common stock.
B. The owner cannot detach and transfer, or separately exercise, the conversion option.
C. The issue price of a convertible bond or convertible preferred stock is payment for both debt or preferred stock and for the conversion option, but no one can observe the fair value of these separate components.
D. choices a and b, only.
E. choices a, b, and c.
100. Which of the following is/aretrue concerning convertible bonds or convertible preferred stock?
A. Convertible bonds and convertible preferred stock permit the owner either to hold the security as a bond or preferred stock or to convert the security into shares of common stock.
B. The owner cannot detach and transfer, or separately exercise, the conversion option.
C. The issue price of a convertible bond or convertible preferred stock is payment for both debt or preferred stock and for the conversion option, but no one can observe the fair value of these separate components.
D. U.S. GAAP requires firms to allocate the full issue price to the bonds or preferred stock and none of the price to the conversion feature.
E. all of the above
