Which of the Following Is/are Not True

question 82

Multiple Choice

Which of the following is/are not true?

• A)Common and preferred stock usually have a par or stated value.
• B)Firms report amounts received from issuing common stock in excess of the par or stated value as Additional Paid-In Capital or a similar account title.
• C)Firms report amounts received from issuing common stock in excess of the par or stated value as Additional Paid-In Capital, or Capital in Excess of Par Value or a similar account title.
• D)The amounts in Additional Paid-In Capital for a firm usually exceeds the amounts in Common Stock, indicating that the firm issued common stock for substantially more than par value, a common practice among publicly traded firms.
• E)none of the above

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Definitions:

Zero Coupon

A bond or debt security that does not pay interest (a coupon) but is traded at a deep discount, providing profit at maturity when the bond is redeemed for its full face value.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage of the investment cost.

Original Maturity

The fixed term length at the issuance of a bond or other fixed-income security until it reaches its due date for the repayment of the principal.

Current Yield

Current yield is the annual income (interest or dividends) divided by the current price of the security.