Common stock valuation, Auditing

Assignment Help:

Common stock valuation

1. Features of common stock (You may review common stock learned from TCA 221)

a. Residual claim on income and assets (after debt holders and preferred stock holders had their claims)

b. Has voting rights

c. Proxy - can designate the voting power to the management at the annual meeting.

d. Two different voting procedures:

Majority voting - One share has one vote. A board of directors (BOD) position is elected by a simple majority.

Cumulative voting - One share can have a number of votes equal to the number of BOD members to be elected. It gives minority shareholders the power to elect a director (The minority shareholders may cast all votes to one candidate to increase his or her chance of being elected).

e. Limited liability - Shareholders' liability is limited to the amount of their investment in the company.


Related Discussions:- Common stock valuation

Procedures in computing the work of the expert, Procedures in computing the...

Procedures in computing the work of the expert The auditor must obtain reasonable assurance that the expert's work constitutes appropriate audit evidence in support of the fina

Disclosure requirements - investment, Disclosure Requirements - Investment ...

Disclosure Requirements - Investment In common terms, the following items have to be disclosed in the concern to all investments: (a) The accounting policies about:-

Assertions about disclosure, Assertions about disclosure Assertions ...

Assertions about disclosure Assertions about disclosure and presentation : a) Rights and Occurrence and obligations -disclosed transactions and events and other issues

Existence - detailed audit of stock, Existence - Detailed Audit of Stock ...

Existence - Detailed Audit of Stock In the previous the auditor accepted a director's certificate as to the existence of stocks.  Until some cases specifically in the United S

Illegal acts, ILLEGAL ACTS Auditors may uncover criminal offences commi...

ILLEGAL ACTS Auditors may uncover criminal offences committed by a client or an employee of the client. This puts them in a difficult place, though the auditor must act careful

Inflation impact analysis, Please present an analysis of the attached case....

Please present an analysis of the attached case. Your analysis should be in the form of a memo not to exceed four pages plus appropriate exhibits. The memo should present your

Factors affecting and controlling occupational health, Factors Affecting an...

Factors Affecting and Controlling Occupational Health (i) Walking-Working Surface Workers must work or move on different surfaces while working. Such - surfaces are cha

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd