The shareholders' equity section of the balance sheet reports the sources of financing provided by preferred and common shareholders and their claims on the net assets of the firm. Which of the following is/are true?
a. The equity of the preferred shareholders usually approximates the liquidation value of the preferred shares.
b. The equity of the preferred shareholders equals the sum of the amounts appearing in the Preferred Stock, Additional Paid-In Capital, Retained Earnings, Accumulated Other Comprehensive Income, Treasury Stock, and other preferred shares equity accounts.
c. The equity of the preferred shareholders equals the sum of the amounts appearing in the Preferred Stock, Additional Paid-In Capital, and Retained Earnings accounts, only.
d. The equity of the preferred shareholders equals the sum of the amounts appearing in the Preferred Stock and Additional Paid-In Capital accounts, only.
e. The equity of the preferred shareholders equals the amounts appearing in the Preferred Stock account, only.
A
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Sovereign Immunity. As part of a plan to stabilize the Republic of Argentina's currency, that country and its central bank (collectively, Argentina) issued bonds that provided for repay-ment in U.S. dollars. Repayment would be made in several locations,
including New York City. When the bonds began to mature, Argentina lacked sufficient funds to cover them, so it unilat-erally extended the time for payment and offered bondholders substitute instruments as a means of rescheduling the debts. Weltover, Inc, of Panama, plus another Panamanian corpo-ration and a Swiss bank (collectively, Weltover), declined to accept the rescheduling and insist-ed on repayment in New York. When Argentina refused, Weltover brought a breach-of-contract action in a U.S. district court. Argentina moved to dismiss the action, claiming immunity from the jurisdiction of the U.S. courts under the Foreign Sovereign Immunities Act. Weltover con-tended that Argentina's sale of the bonds fell under the "commercial activities" exception to sovereign immunity. What should the court decide? Discuss fully.
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Indicate whether the statement is true or false
Which of the following statements is CORRECT?
A. Call options give investors the right to sell a stock at a certain strike price before a specified date. B. Options typically sell for less than their exercise value. C. LEAPS are very short-term options that were created relatively recently and now trade in the market. D. An option holder is not entitled to receive dividends unless he or she exercises their option before the stock goes ex dividend. E. Put options give investors the right to buy a stock at a certain strike price before a specified date.
At the time of liquidation, Fairchild Company reported assets of $200,000, liabilities of $120,000, common stock of $90,000 and retained earnings of ($10,000). What amount of Fairchild's assets are the shareholders entitled to receive?
A. $100,000 B. $90,000 C. $200,000 D. $80,000