acc 4

Coupon rate vs Coupon payment (Difference anc definitions for both)

Coupon rate is the annual rate for the bond. Coupon payment is the rate divided by the periods and is the payment for every period.

what are call provisions?

They are the ability for the bond-issuing company to call off the bond early, paying back the money.

what is yield to maturity?

The yield to maturity is the total annual return if you hold the bond until it matures.

what is a bond covenant?

A bond covenant is an agreement between the borrower and the lender agreeing on certain stipulations when it comes to the lending of the money. An example of this would be that the company is not allowed to take on a certain limit of debt.

What does the number of shares issued mean

The amount sold.

What are common shares?

Basic voting shares issued by a corp

What does par value mean??? In relation to company shares.

Insignificant value only need for the charter. Is usually one cent.

What are outstanding shares. (Opposite of what you assume it means)

These are shares that have been distributed to investors that they company no longer owns.

What is an income summary?

This is a total of your revenue and expenses. It doesn't appear on any financial statement and is used to make sure everything is right. Its not a liabilty, asset or wtver its a temporary acc.

What does "outstanding" mean in the context of given out dividends

It means they have been given out. THINK the O in outstanding stands for opposite, bc thats the opposite of what the word means.

what does cumulative mean in terms of giving out dividends when a company hasn't given them out for the past two years? If the dividends are cumulative, then do we have to pay these dividends out that we missed or not?

YESSS think of exam cumulitive.

Who is paid out first? Common shares or prefered shares? Does par value dictate dividends for ethier of them? (No yes, one? and why)

Prefered. And par value only affects prefered dividends.