Is redeemable preferred stock a liability or shareholders' equity?
Is redeemable preferred stock a liability or shareholders' equity?
Homework Answers
Answer-Redeemable preferred stock is a type of preferred stock that allows the issuer to buy back the stock at a certain price and retire it, thereby converting the stock to treasury stock. ... It pays dividends, as do other forms of equity, but it may also be bought back by the issuer, which is a characteristic of debt.
preferred stock is a share in the ownership (or part of the capital stock), having
certain privileges (designated rights) that rank it ahead of common stock. These
privileges include the right to receive dividends at a specified rate before common
shareholders and the right to receive a portion of liquidation proceeds before common
shareholders. Except in unusual instances, preferred shareholders have no voting rights.
If you own preferred stock; when a preferred stock has a redeemable option, the firm can...
If you own preferred stock; when a preferred stock has a redeemable option, the firm can recall the stock if it is in your beat interest. True or False?
Explain why owners' equity includes common stock as a liability even though the shareholders will not...
Explain why owners' equity includes common stock as a liability even though the shareholders will not normally be repaid their investments?
The following is the Shareholders Equity section of the BillyBoB Corporation at December 31,2017: Preferred Stock,...
The following is the Shareholders Equity section of the BillyBoB Corporation at December 31,2017: Preferred Stock, 10% annual dividend, $40 par, 100,000 shares authorized, 7,000 shares issued & outstanding. Common Stock, $5 par, 750,000 shares authorized, 112,000 issued & outstanding.. Paid-In Capital in excess of par on preferred... Paid-In Capital in excess of par on common 280,000 ....560, 210,000 1,280,000 January 20, 2018 BillyBoB Corp issued 38,000 shares of common stock for $456,000 cash. February 5, 2018 The price of...
most are correct except for a couple like the paid to preferred The shareholders' equity of...
most are correct except for a couple like the paid to
preferred
The shareholders' equity of MLS Enterprises includes $180 million of no par common stock and $360 million of 5% cumulative preferred stock. The board of directors of MLS declared cash dividends of $40 million in 2018 after paying $16 million cash dividends in both 2017 and 2016 What is the amount of dividends common shareholders will receive in 2018? (Enter your answers in millions (i.e., 10,000,000 should be...
Comprehensive Dakota Corporation had the following shareholders' equity account balances at December 31, 2018: Preferred stock...
Comprehensive Dakota Corporation had the following shareholders' equity account balances at December 31, 2018: Preferred stock $1,800,000 Additional paid-in capital on preferred stock 90,000 Common stock 5,150,000 Additional paid-in capital on common stock 3,500,000 Retained earnings 4,000,000 Unrealized decrease in value of marketable equity securities 245,000 Treasury common stock 270,000 Transactions during 2019 and other information relating to the shareholders' equity accounts were as follows: 1. Dakota's preferred and common shares are traded on the over-the-counter market. At December 31,...
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...
Statement of Shareholders' Equity On January 1, 2019, Powder Company provided the following shareholders' equity section...
Statement of Shareholders'
Equity On January 1, 2019, Powder Company provided the following
shareholders' equity section of its balance sheet: Contributed
Capital:
ptatement of Snarenolders' Equity on January 1, 2019, Powder Company provided the following shareholders' equity section of its balance sheet: Contributed Capital: Preferred stock, $100 par $ 92,700 37,400 21,500 Common stock, $5 par Additional paid-in capital on preferred stock Additional paid-in capital on common stock Total contributed capital Retained earnings 58,700 $210,300 185,000 Total Shareholders' Equity $395,300...
3. Saturn Enterprises Inc. reported the following shareholders' equity on December 31, 2017 Preferred shares, $1...
3. Saturn Enterprises Inc. reported the following shareholders' equity on December 31, 2017 Preferred shares, $1 annual cumulative dividend, no par value, redeemable at $105 Common shares, no par value, authorized -1,000,000 shares; issued and outstanding Contributed surplus- common shares authorized -100,000 shares; issued and outstanding-40,000 shares $4,000,000 500,000 shares 5,000,000 240,000 Retained earnings he following transactions occurred in 2018: Jan 1, Saturn redeemed 10,000 preferred shares at call price. June 1, Saturn retired 100,000 common shares for $15 per...
The following is the Shareholders Equity section of the BillyBoB Corporation at December 31, 2017: Preferred...
The following is the Shareholders Equity section of the BillyBoB Corporation at December 31, 2017: Preferred Stock, 10% annual dividend, $40 par, 100,000 shares authorized, 7,000 shares issued& outstanding280,000 Common Stock, $5 par, 750,000 shares authorized, 112,000 issued & outstanding.. Paid-In Capital in excess of par on preferred...70,000 Paid-In Capital in excess of par on common210,000 560,000 Retained Earnings 1,280,000 January 20, 2018 BillyBoB Corp issued 38,000 shares of common stock for $456,000 cash. February 5, 2018 The price of...
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...
Explain why owners' equity includes common stock as a liability even though the shareholders will not normally be repaid their investments?
The following is the Shareholders Equity section of the BillyBoB Corporation at December 31,2017: Preferred Stock, 10% annual dividend, $40 par, 100,000 shares authorized, 7,000 shares issued & outstanding. Common Stock, $5 par, 750,000 shares authorized, 112,000 issued & outstanding.. Paid-In Capital in excess of par on preferred... Paid-In Capital in excess of par on common 280,000 ....560, 210,000 1,280,000 January 20, 2018 BillyBoB Corp issued 38,000 shares of common stock for $456,000 cash. February 5, 2018 The price of...
most are correct except for a couple like the paid to
preferred
The shareholders' equity of MLS Enterprises includes $180 million of no par common stock and $360 million of 5% cumulative preferred stock. The board of directors of MLS declared cash dividends of $40 million in 2018 after paying $16 million cash dividends in both 2017 and 2016 What is the amount of dividends common shareholders will receive in 2018? (Enter your answers in millions (i.e., 10,000,000 should be...
Comprehensive Dakota Corporation had the following shareholders' equity account balances at December 31, 2018: Preferred stock $1,800,000 Additional paid-in capital on preferred stock 90,000 Common stock 5,150,000 Additional paid-in capital on common stock 3,500,000 Retained earnings 4,000,000 Unrealized decrease in value of marketable equity securities 245,000 Treasury common stock 270,000 Transactions during 2019 and other information relating to the shareholders' equity accounts were as follows: 1. Dakota's preferred and common shares are traded on the over-the-counter market. At December 31,...
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...
Statement of Shareholders'
Equity On January 1, 2019, Powder Company provided the following
shareholders' equity section of its balance sheet: Contributed
Capital:
ptatement of Snarenolders' Equity on January 1, 2019, Powder Company provided the following shareholders' equity section of its balance sheet: Contributed Capital: Preferred stock, $100 par $ 92,700 37,400 21,500 Common stock, $5 par Additional paid-in capital on preferred stock Additional paid-in capital on common stock Total contributed capital Retained earnings 58,700 $210,300 185,000 Total Shareholders' Equity $395,300...
3. Saturn Enterprises Inc. reported the following shareholders' equity on December 31, 2017 Preferred shares, $1 annual cumulative dividend, no par value, redeemable at $105 Common shares, no par value, authorized -1,000,000 shares; issued and outstanding Contributed surplus- common shares authorized -100,000 shares; issued and outstanding-40,000 shares $4,000,000 500,000 shares 5,000,000 240,000 Retained earnings he following transactions occurred in 2018: Jan 1, Saturn redeemed 10,000 preferred shares at call price. June 1, Saturn retired 100,000 common shares for $15 per...
The following is the Shareholders Equity section of the BillyBoB Corporation at December 31, 2017: Preferred Stock, 10% annual dividend, $40 par, 100,000 shares authorized, 7,000 shares issued& outstanding280,000 Common Stock, $5 par, 750,000 shares authorized, 112,000 issued & outstanding.. Paid-In Capital in excess of par on preferred...70,000 Paid-In Capital in excess of par on common210,000 560,000 Retained Earnings 1,280,000 January 20, 2018 BillyBoB Corp issued 38,000 shares of common stock for $456,000 cash. February 5, 2018 The price of...
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