Time Watch Co. has $46 million in earnings and is considering paying $6.45 million in interest to bondholders and $4.35 million to preferred stockholders in dividends. a. What are the bondholders’ contractual claims to payment?  b. What are the preferred stockholders’ immediate contractual claims to payment? What privilege do they have?

5. Which is correct about debt securities? a. Debt securities make the holders owners and give them the right to vote in all matters of the firm. b. Debt securities give the holders the right to receive interest and dividends. c. Debt securities give the holders the right to be elected as board of directors or to vote them. d. Debt securities give the holders the right to convert them into stocks if the indenture states. e. All of the above

Both stock and bond returns are based on the cash flows generated by the issuing firm. How do shareholders and bondholders differ in their claimof the firm’s cash flows? How doessuch claim difference cause the risk difference between stocks and bonds?

Determine if the following, if stocks or bonds 1. Its buyers receive return called dividend. a. Stocks b. Bonds 2. It is paid based on its redemption value. a. Stocks b. Bonds 3. It is said to be redeemed at par if face value equals redemption value a. Stocks b. Bonds 4. It is represented by a certificate which is proof of ownership. a. Stocks b. Bonds 5. It grants credit to a company. a. Stocks b. Bonds 6. It represents a claim on the company's assets and earnings. a. Stocks b. Bonds 7. Its buyers become lenders to the company. a. Stocks b. Bonds 8. It is a written contract between the borrower and the lender. a. Stocks b. Bonds 9. Some owners of it earn voting rights to some important company decisions. a. Stocks b. Bonds 10. Some owners of it earn voting rights to some important company decisions. a. Stocks b. Bonds

If given the original value (par value) and market price (the price the bond sold for), how do youknow if the bond is being issued at a discount or a premium? 2. As an investor, would you want to buy a bond at a discount or premium? Explain the reasoningbehind your choice. 3. Explain how a company's Income Statement is affected by treasury stock transactions?

Which of the following is not a typical question that must be answered with regard to a private company that is owned by a large number of shareholders? Question 46 options:   How and when does the company get money from the sale of its stock?   What rate of return does the company promise to pay when it sells stock?   What is the dividend yield on preferred shares of companies that hold this stock?   Who makes decisions in a company owned by a large number of shareholders?

1. Anton wants to have a portion of ownership of a certain company. Which of the following should he invest? A. Annuity B. Bonds C. Shares D. Stocks 2. What writtwn contract is exhibited by a debtor that is legally binding which stipulates the amount borrowed at a specified tine in the future? A. Stocks B. Annuity C. Amortization D. Bonds 3. Which of the following covers when the frequency of the regular payment is different from the frequency of interest conversion? A. Bonds B. Ammortilation C. General annuity D. Simple annuity 4. What term is refers to the type of arrangement where composition is important but not order? A. Courting B. Permutation C. Multiplication rulw D. Combination 5. If p q is a tautology, then what can you inter about p and q? A. P and Q are either true or false but not both B. P and Q are always false C. P and Q are always true D. P and Q are either both true or false both false

How do I calculate the net abount of stock issued when the firm pays X amount of dollars in dividends?

What's transaction can increase the amount of treasury stock in which shown in Shareholders' Equity in Balance sheet ( in this picture is $-8,131) ,for example, retirement of treasury stock The picture attached is not the question, it's just illustrated supplementary of this question.

B. TRUE OR FALSE: Write TRUE if the statement is correct; if incorrect, write FALSE. 1. Preferred stockholders get cash dividends before common stockholders. 2. A financial asset is any contract that reflects a residual stake in an entity's assets after all liabilities have been paid. 3. Interest rates on treasury bonds are often higher than those on corporate bonds. 4. A 10-year T-bond is a money market instrument. 5. A public offering is the selling of new securities to the general public, whereas an initial public offering (IPO) is the first issuance of shares. 6. Insurance companies pool payments and invest the proceeds in a variety of securities until funds are required to settle policyholder claims. 7. Financial markets give capital for financial managers to support business progress and development. 8. BSP is in charge of supervising a country's monetary system and policies, managing its money supply, and determining interest rates. 9. The stock price is used to determine the…