What happens if there isn't enough APIC to pay out a liquidating dividend? Do companies then...
What happens if there isn't enough APIC to pay out a liquidating dividend? Do companies then dip into C/S?
Homework Answers
Liquidating dividend is a return of company's shareholder's portion of original capital investment when a company is going out of business or sold a portion of business. Company will pay liquidating dividends to the shareholders only when company's creditors and all the outsider's liability is paid off. Company has no liability to return complete capital to the shareholders. so in case, there is not enough additional paid in capital (APIC) to pay the liquidating dividend then shareholders have to take whatever is left after company has paid off to its outsiders. So, if additional capital is not available then company is not liable to pay liquidating dividends as this dividend can be paid to the shareholders only if company's net assets are positive.
Please note that second part of the question is not clear. Please use the standard abbreviations as far as possible.
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What happens if there isn't enough APIC to pay out a liquidating
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Problem 6-2 JJ Industries will pay a regular dividend of $0.85 per share for each of...
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Question 1 1 pts DEF Industries will pay a regular dividend of $3.05 per share for...
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Please only answer if you know, thank you. Companies that have preferred shareholders promise to pay a stated dividend...
Please only answer if you know, thank you.
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Companies that have preferred stock outstanding promise to pay a stated dividend for an infinite period....
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 to bonds, preferred stockholders...
Try to find out what happens when we press down or up of switch 3? (Please...
Try to find out what happens when we press down or up of switch
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Table : CPLD USER_REG Register Bit Name R/W Description 7 USER_SW3 User DIP Switch 311 = Off(UP), 0 = On(DOWN)) 6 USER_SW2 User DIP Switch 211 = Off(UP), 0 = On(DOWN)) 5 USER_SW1 User DIP Switch 1(1 = Off(UP), O = On(DOWN)) 4 USER_SWO User DIP Switch 011 = Off(UP), 0 = On(DOWN)) 3 USER_LED3 R/W User-defined LED 3...
Problem 6-2 JJ Industries will pay a regular dividend of $0.85 per share for each of the next four years. At the end of four years, the company will also pay out a liquidating dividend. If the discount rate is 9 percent, and the current share price is $79, what must the liquidating dividend be? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) Liquidating dividend
Question 1 1 pts DEF Industries will pay a regular dividend of $3.05 per share for each of the next 4 years. At the end of the 4 years, the company will also pay out a $37 per share liquidating dividend, and the company will cease operations. If the discount rate is 6.93 percent, what is the current value of the company's stock? Answer to two decimals. Carry intermediate calculations to four decimals.
Please only answer if you know, thank you.
Companies that have preferred shareholders 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 similar to bonds in some respects and to common stock in others. Companies can suspend the dividend paid to preferred shareholders without throwing the company into bankruptcy As with bonds, preferred shareholders receive a fixed dividend before earnings are paid out to...
Try to find out what happens when we press down or up of switch
3? (Please refer to the picture given)
Table : CPLD USER_REG Register Bit Name R/W Description 7 USER_SW3 User DIP Switch 311 = Off(UP), 0 = On(DOWN)) 6 USER_SW2 User DIP Switch 211 = Off(UP), 0 = On(DOWN)) 5 USER_SW1 User DIP Switch 1(1 = Off(UP), O = On(DOWN)) 4 USER_SWO User DIP Switch 011 = Off(UP), 0 = On(DOWN)) 3 USER_LED3 R/W User-defined LED 3...
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