Which of the following statements related to preferred stock is correct? (Choose one) Preferred shareholders normally...
Which of the following statements related to preferred stock is correct? (Choose one)
Preferred shareholders normally receive one vote per share of stock owned.
Preferred shareholders determine the outcome of any election that involves a proxy fight.
Preferred shareholders are considered to be the residual owners of a corporation.
Preferred stock has a pre-determined stated liquidating value per share.
The board of directors can decide not to pay the dividends on preferred shares but to pay a small dividend on common shares in a given year.
Homework Answers
The following statements related to preferred stock is correct:-
Ans- The board of directors can decide not to pay the dividends on preferred shares but to pay a small dividend on common shares in a given year. There is no obligation on company to pay dividends to preference shareholders while giving small dividend on common shares in a given year.
Other Options being Wrong-
- Preferred shareholders does not have voting rights.
- Preferred shareholders does not carry power related to voting, proxy.
- Common Stockholders are the residual owners.
- liquidating value per share is not pre-determined.
If you need any clarification regarding this solution, then you can ask in comments
If you like my answer then please Up-vote as it will be motivating.
Add Answer to:
Which of the following statements related to preferred stock is
correct? (Choose one)
Preferred shareholders normally...
Which one of the following statements is correct? The preemptive right grants shareholders the right to...
Which one of the following statements is correct? The preemptive right grants shareholders the right to purchase additional shares in the company prior to shares available for public. Dividends become a liability of the firm on the date of payment. The stated value of most preferred stock is $1,000 per share. A market maker on the floor of an exchange is called a trader. Under major voting, each share of stock allows the shareholder one vote, and each position on...
Hardy Lumber has a capital structure that includes bonds, preferred stock, and common stock. Which one...
Hardy Lumber has a capital structure that includes bonds, preferred stock, and common stock. Which one of the following rights is most apt to be granted to the preferred shareholders? Multiple Choice Right to share in company profits prior to other shareholders. Right to elect the corporate directors. Right to vote on proposed mergers. Right to all residual income after the common dividends have been paid, o oo right to all resicus income are the Right to a permanent seat...
Mary owns 100 shares of stock. Each share entitles her to one vote per open seat...
Mary owns 100 shares of stock. Each share entitles her to one vote per open seat on the board of directors. Assume there are 3 open seats in the current election and Mary casts all 300 of her votes for a single candidate. What is the term used to describe this type of voting? O A Condensed B. Straight C. Proxy OD. Aggregate E. Cumulative
Princess Company has the following shareholders' equity on its balance sheet: Shareholders' Equity Preferred shares, $9...
Princess Company has the following shareholders' equity on its balance sheet: Shareholders' Equity Preferred shares, $9 cumulative, 4,000 issued and outstanding Common shares, 50,000 issued and outstanding Retained earnings Total shareholders' equity 4. $400,000 2,600,000 460,000 3,460,000 a. Calculate the total annual preferred dividend entitlement b. Calculate the total amount of contributed capital. c. If the company paid total dividends of S120,000 in the year, and there were no preferred dividends owing from past years, how much did the common...
1Common shareholders have all of the following rights except the right to: a. vote for the...
1Common shareholders have all of the following rights except the right to: a. vote for the board of directors. b. vote on company plans and investments. c. share corporate profit through receipt of dividends. d. share in assets upon liquidation in proportion to their holdings. 2Disadvantages of a corporation compared to a proprietorship or partnership do not include: a. potential for additional tax. b. separate legal existence. c. increased cost and complexity. d. ownership separated from management. 3A company's authorized...
Please help.Thanks Stock Rights to Shareholders Nichols Electronics Corporation has been experiencing a steadily growing demand...
Please help.Thanks
Stock Rights to Shareholders Nichols Electronics Corporation has been experiencing a steadily growing demand for its products. In order to meet this demand, a major expansion of production facilities is necessary. Nichols plans to raise the money for this proposed expansion by issuing 10,000 shares of $50 par preferred stock and 50,000 shares of $10 par common stock. These shares were previously authorized but have not yet been issued 3 There are presently 200,000 shares of $10 par...
Company XYZ has 2,000 shares of 6%, $100 par value, cumulative preferred stock and 4,000 common...
Company XYZ has 2,000 shares of 6%, $100 par value, cumulative preferred stock and 4,000 common shares outstanding. A $40,000 dividend is declared by the company's board of directors in the current financial report. Assuming there are $6,000 dividends in arrears from the previous financial year, what are the dividends paid to preferred shareholders and common shareholders, respectively? A. Preferred stock: $9 per share; Common stock: $7.5 per share B. Preferred stock: $6 per share; Common stock: $5.5 per share...
12. Valuing preferred stock Companies that have preferred stock outstanding promise to pay a stated dividend...
12. Valuing preferred stock Companies that have preferred stock outstanding promise to pay a stated dividend for an infinite period. Preferred stock is treated like a perpetuity if the payments last forever. Preferred stocks are considered to be a hybrid of a common stock and a bond. For example, one of the major differences between preferred shares and bonds is that the issuing companies can suspend the payment of their preferred dividends without throwing the company into bankruptcy. However, similar...
need help on number one, two, and three B. (Recording the Issuance of Common and Preferred...
need help on number one, two, and three
B. (Recording the Issuance of Common and Preferred Stock) Envy Gas Corporation was organized on June 1, 2019. It is authorized to issue 100,000 shares of 5%, $100 par value preferred stock, and 1,750,000 shares of no par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. June 15 Issued 165,000 shares of common stock for cash at $5 per share....
12. Valuing preferred stock Companies that have preferred stock outstanding promise to pay a stated dividend...
12. Valuing preferred stock Companies that have preferred stock outstanding promise to pay a stated dividend for an infinite period. Preferred stock is treated like a perpetuity if the payments last forever. Preferred stocks are considered to be a hybrid of a common stock and a bond. For example, one of the major differences between preferred shares and bonds is that the issuing companies can suspend the payment of their preferred dividends without throwing the company into bankruptcy. However, similar...
Hardy Lumber has a capital structure that includes bonds, preferred stock, and common stock. Which one of the following rights is most apt to be granted to the preferred shareholders? Multiple Choice Right to share in company profits prior to other shareholders. Right to elect the corporate directors. Right to vote on proposed mergers. Right to all residual income after the common dividends have been paid, o oo right to all resicus income are the Right to a permanent seat...
Mary owns 100 shares of stock. Each share entitles her to one vote per open seat on the board of directors. Assume there are 3 open seats in the current election and Mary casts all 300 of her votes for a single candidate. What is the term used to describe this type of voting? O A Condensed B. Straight C. Proxy OD. Aggregate E. Cumulative
Princess Company has the following shareholders' equity on its balance sheet: Shareholders' Equity Preferred shares, $9 cumulative, 4,000 issued and outstanding Common shares, 50,000 issued and outstanding Retained earnings Total shareholders' equity 4. $400,000 2,600,000 460,000 3,460,000 a. Calculate the total annual preferred dividend entitlement b. Calculate the total amount of contributed capital. c. If the company paid total dividends of S120,000 in the year, and there were no preferred dividends owing from past years, how much did the common...
Please help.Thanks
Stock Rights to Shareholders Nichols Electronics Corporation has been experiencing a steadily growing demand for its products. In order to meet this demand, a major expansion of production facilities is necessary. Nichols plans to raise the money for this proposed expansion by issuing 10,000 shares of $50 par preferred stock and 50,000 shares of $10 par common stock. These shares were previously authorized but have not yet been issued 3 There are presently 200,000 shares of $10 par...
Company XYZ has 2,000 shares of 6%, $100 par value, cumulative preferred stock and 4,000 common shares outstanding. A $40,000 dividend is declared by the company's board of directors in the current financial report. Assuming there are $6,000 dividends in arrears from the previous financial year, what are the dividends paid to preferred shareholders and common shareholders, respectively? A. Preferred stock: $9 per share; Common stock: $7.5 per share B. Preferred stock: $6 per share; Common stock: $5.5 per share...
12. Valuing preferred stock Companies that have preferred stock outstanding promise to pay a stated dividend for an infinite period. Preferred stock is treated like a perpetuity if the payments last forever. Preferred stocks are considered to be a hybrid of a common stock and a bond. For example, one of the major differences between preferred shares and bonds is that the issuing companies can suspend the payment of their preferred dividends without throwing the company into bankruptcy. However, similar...
need help on number one, two, and three
B. (Recording the Issuance of Common and Preferred Stock) Envy Gas Corporation was organized on June 1, 2019. It is authorized to issue 100,000 shares of 5%, $100 par value preferred stock, and 1,750,000 shares of no par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. June 15 Issued 165,000 shares of common stock for cash at $5 per share....
12. Valuing preferred stock Companies that have preferred stock outstanding promise to pay a stated dividend for an infinite period. Preferred stock is treated like a perpetuity if the payments last forever. Preferred stocks are considered to be a hybrid of a common stock and a bond. For example, one of the major differences between preferred shares and bonds is that the issuing companies can suspend the payment of their preferred dividends without throwing the company into bankruptcy. However, similar...
Most questions answered within 3 hours.
-
Choose the sentence that uses correct punctuation.
1a. The prefatory parts of a report include the...
asked 1 minute ago -
For the element arsenic, which one of the following sets of
quantum numbers could not apply...
asked 11 minutes ago -
Compare and contrast the architectures of 3 types of ADCs:
Flash, SAR, and pipelined. Use the...
asked 12 minutes ago -
Given P(A) = 0.40, P(B) = 0.50, P(A ∩ B) = 0.15. Which of the
following...
asked 16 minutes ago -
Explain changes in workforce participation for women with
children. What legislation exists related to work and...
asked 18 minutes ago -
How high must a pointed arch be if it is to span a
space 4.2 m...
asked 24 minutes ago -
A housepainter who weighs 750 N stands 0.6 m from one end of a
2.0 m...
asked 26 minutes ago -
Implement Singly Linked List detectLoop in Java.
It would check whether the linked list contains a...
asked 29 minutes ago -
A small mailbag is released from a helicopter that is descending
steadily at 2.10 m/s.
After...
asked 29 minutes ago -
Write a C – program that calls a user-defined function from
within main() that determines the...
asked 33 minutes ago -
For a 2-Level design, with 8 factors, a recommended screening
design model is:
a. Taguchi L12...
asked 1 hour ago -
1. Define a function in python that returns the sum of the
following 4 lists. Remember...
asked 1 hour ago