22207 Final: Accounting Final Exam Study Notes - 1B
Document Summary
Stover, ltd has the following types of share: ordinary share, 100 000 shares, 5%, cumulative preference share, 20 000 shares. Stover does not pay dividends in 2011 or 2012 but declares 000 of dividends in 2013. 30,000: characteristics of share buybacks and how they"re recorded. Way to reduce no. of shares (dr ordinary share capital, cr cash) Tax effective way to return capital (makes company look smaller) They want to leverage up to increase liabilities and decrease equity to become more geared (cid:494)healthy level of debt(cid:495) Bajada limited purchases 1 000 shares of its own ordinary share on. 3 may when the share is trading for per share. Cash: evaluation of equity through horizontal, vertical & ratio analyses. Eps = total income/no. of shares (depends on number on issue) Dividend payout = dividends/total income or dividend per share/eps.
