Exam 11: Financing a Business

arrow
  • Select Tags
search iconSearch Question
flashcardsStudy Flashcards
  • Select Tags

Large company agrees to pay £1,750,000 to take over small company.Large company's shares have a market value of £1.75.The £1,750,0000 is paid by the issue of 1 million £1 shares. What share premium will Large report?

(Multiple Choice)
4.9/5
(40)

There is no requirement for a company to pay a dividend on ordinary shares

(True/False)
4.9/5
(39)

Retained earnings do not contribute towards financing an increase in net assets

(True/False)
4.8/5
(36)

Large company agrees to pay £1,750,000 to take over small company.Large company's shares have a market value of £1.75.The £1,750,0000 is paid by the issue of 1 million £1 shares. What additional share capital will Large report?

(Multiple Choice)
4.8/5
(35)
Showing 21 - 24 of 24
close modal

Filters

  • Essay(0)
  • Multiple Choice(0)
  • Short Answer(0)
  • True False(0)
  • Matching(0)