Question

Explain the impact of stock issuances and repurchases on the financial statements. Know how to allocate the impact of a sale of previously repurchased stock Know basic formulas for Dividend Payout and Dividend Yield, and be prepared to do simple calculations (these formulas will not be given to you, but they are simple so if you practice a bit you should be able to remember them) Explain the reasoning behind giving employees stock-based compensation Explain the assumptions we need to make when accounting for stock-based compensation when forecasting/valuing the firm Define convertible preferred stock/bonds and explain what convertible preferred stock and convertible bonds really are Explain the financial statement effects of a conversion of preferred stock or bonds Chapter 8: Describe what Accumulated Other Comprehensive Income is, and describe some examples of items that would be recognized in AOCI

Answer 1

The effect on the Stockholder's Equity account from the issuance of shares is also an increase. Money you receive from issuing stock increases the equity of the company's stockholders. ... Enter the number of shares you issued with the transaction and the number of shares your company is still authorized to issue.

impact of repurchases on financial statement:-

a share repurchases has an obvious effect on a company's income statement, since it reduces its outstanding shares. bit it also impact other financial statement

the buyback will also shrink shareholders equity on the liabilities side by the same amount.

----->. stock based compensation gives a company's employee equity ownership rights.

the stock option is an offer by a company that give right to an employee to buy a specified number of share in the company at an agreed price

Convertible preferred stock is preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually any time after a predetermined date.

Accumulated other comprehensive income  

it is a line item in shareholder's equity section of the balance sheet that includes income that is not reported in income statement. other comprehensive incomes inclued unrealised gains or losses on certain type of investments as well as pension losses or gains anf foreign currency transactions.