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Match the Term and the Definition

Question 26

Matching

Match the term and the definition.Not all definitions will be used.

Premises:
Basic EPS
ROE
Seasoned new issues
Issued shares
Payment date
Date of record
Stock options
Pro rata basis
Responses:
Net income divided by the average amount of shareholders' equity.
The date on which a company debits dividends payable and credits cash.
When cash or stock dividends are issued in an equal dollar or share amount per shareholder.
The total number of shares the company has sold,whether held by shareholders or by the company.
The date on which a company determines who receives a dividend.
When owners of the company contribute additional capital beyond what they paid for their shares.
The date on which a company authorizes a dividend payment.
The accumulation of all the past dividends the company has not paid.
When a company sells issues of stock after its IPO.
Dividends that have not had income tax withheld from them.
When cash or stock dividends are paid according to the proportion of stock owned.
When employees of a company have the opportunity to buy a company's stock in the future at a fixed price.
Net income divided by average number of outstanding common shares.
When a company issues stock with the right to "call it back," i.e.,repurchase it at a given price in the future.
Earnings per sales; a company's earnings divided by the units sold.
The total number of shares the company has sold to private investors.

Correct Answer:

Net income divided by the average amount of shareholders' equity.
The date on which a company debits dividends payable and credits cash.
When cash or stock dividends are issued in an equal dollar or share amount per shareholder.
The total number of shares the company has sold,whether held by shareholders or by the company.
The date on which a company determines who receives a dividend.
When owners of the company contribute additional capital beyond what they paid for their shares.
The date on which a company authorizes a dividend payment.
The accumulation of all the past dividends the company has not paid.
When a company sells issues of stock after its IPO.
Dividends that have not had income tax withheld from them.
When cash or stock dividends are paid according to the proportion of stock owned.
When employees of a company have the opportunity to buy a company's stock in the future at a fixed price.
Net income divided by average number of outstanding common shares.
When a company issues stock with the right to "call it back," i.e.,repurchase it at a given price in the future.
Earnings per sales; a company's earnings divided by the units sold.
The total number of shares the company has sold to private investors.
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