Question

Stock that receives preferential treatment in respect to dividends is called: dual class cumulative O non-cumulative preferre

0 0
Add a comment Improve this question Transcribed image text
Answer #1

These types of stocks are called preferred stocks. Hence, 4th Option is correct.

Dual class is the issuing of various types of shares by a single company.

Cumulative stocks have the provision that if any dividend payments have been missed then the dividends will be combined to pay later.

whereas non-cumulative stock doesn't combined the dividend payment.

Common stock is a security that represents ownership in a corporation

Add a comment
Know the answer?
Add Answer to:
Stock that receives preferential treatment in respect to dividends is called: dual class cumulative O non-cumulative...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Dividends Year Assume Preferred Stock is Non-Cumulative Assume Preferred Stock is Cumulative Declared and Paid Preferred...

    Dividends Year Assume Preferred Stock is Non-Cumulative Assume Preferred Stock is Cumulative Declared and Paid Preferred Dividend Common Dividend Preferred Dividend Common Dividend 2018 10,000 2019 55,000 2020 80,000 Since it was organized in January 2015, HobKnob Production Corporation has had 1500 shares of $100 par value, 10% preferred stock and 15,000 shares of $20 par value common stock. It has declared and paid dividends each year as shown below. Show the distribution of total dividends to each class of...

  • LUIHILISLUILLALILISLIU JJ Preferred and Common Stock Dividends Barstow Corporation has a single class of common stock...

    LUIHILISLUILLALILISLIU JJ Preferred and Common Stock Dividends Barstow Corporation has a single class of common stock and a single class of cumulative preferred stock. The cumulative preferred stock requires the corporation to pay an annual dividend of $8,000 to preferred stockholders. On January 1, 2013, Barstow's preferred dividends were 1 year in arrears, which means that Barstow declared neither preferred nor common dividends in 2012. During the 3 years (2013-2015), Barstow's board of directors determined they would be able to...

  • The first question York's outstanding stock consist of 80,000 shares of non-cumulative 7.5% preferred stock with...

    The first question York's outstanding stock consist of 80,000 shares of non-cumulative 7.5% preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years of operation the corporation declared and paid the following total cash dividend: 2013........$20,000 2014........$15,000 2015........$200,000 2016........$300,000 A. Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Also compare the total dividends paid to...

  • Which one of the following statements about the preferred stock is TRUE? Unlike dividends paid on...

    Which one of the following statements about the preferred stock is TRUE? Unlike dividends paid on common stock, dividends paid on preferred stock are a tax-deductible expense Preferred stock is a hybrid product. It shares a lot of similarity with debt, but the tax treatment is different Non-cumulative dividends on preferred stock payable during the next twelve months are considered to be a corporate liability There is no significant difference in the voting rights granted to preferred and common shareholders

  • 12. The cumulative feature of preferred stock A) limits the amount of cumulative dividends to the...

    12. The cumulative feature of preferred stock A) limits the amount of cumulative dividends to the par value of the preferred stock. B) requires that dividends not paid in any year must be made up in a later year before dividends are distributed to common shareholders. C) means that the shareholder can accumulate preferred stock until it is equal to the par value of common stock at which time it can be converted into common stock. D) enables a preferred...

  • How come you put 8,000 for common stock if it's non cumulative but leave it blank...

    How come you put 8,000 for common stock if it's non cumulative but leave it blank if it is cumulative? 3/25 Payment date common stock Draends 100,ooo common stock 100,000 2 HEP Corporation has 1,000 shares of 8%, $50 par value cumulative preferred stock and 50,000 shares of $10 par value common stock outstanding. Sox.099 4/Shorex Shore x 1000 shares = 4,000 (es) Allocate the dividends for the following years: lings 2011 2012 2013 Dividends declared $3,000 $6,000 $12,000 Preferred...

  • Dividends Per Share Windborn Company has 20,000 shares of cumulative preferred 1 stock, S50 par and 50.000 shares o...

    Dividends Per Share Windborn Company has 20,000 shares of cumulative preferred 1 stock, S50 par and 50.000 shares of $20 par common stock. The following amounts were distributed as dividends: 2011 $25,000 2012 8,000 203 30,000 Determine the dividends per share for preferred and common stock for each year Round all answers to two decimal places. If an answer is zero, enter 'o'. Preferred Stock Common Stock (dividends per share) (dividends per share) 2011 2012 2093

  • PLEASE HELPPP Wade's outstanding stock consist of 40,000 shares of non-cumulative 7.5% preferred stock with a 10 par val...

    PLEASE HELPPP Wade's outstanding stock consist of 40,000 shares of non-cumulative 7.5% preferred stock with a 10 par value and also 10,000 shares of common stock with a $1 par value. During its first four years of operation the corporation declared and paid the following total cash dividens 2011 2012 2013 2014 $ 10,000.00 $ 35,000.00 $ 100,000.00 $ 196,000.00 $341,000.00 Determine the distribution of dividends between common & preferred stockholders each year and in total. Determine the distribution of...

  • Brief Exercise 10-50 Preferred and Common Stock Dividends Brookshed Corporation has a single class of common...

    Brief Exercise 10-50 Preferred and Common Stock Dividends Brookshed Corporation has a single class of common stock and a single class of cumulative preferred stock. The cumulative preferred stock requires the corporation to pay an annual dividend of $11,000 to preferred stockholders. On January 1, 2019, Brookshed's preferred dividends were 1 year in arrears, which means that Brookshed declared neither preferred nor common dividends in 2018. During the next 3 years (2019-2021), Brookshed's board of directors determined they would be...

  • Requirement 1. Assume the preferred stock is cumulative. Compute the amount of dividends to preferred and...

    Requirement 1. Assume the preferred stock is cumulative. Compute the amount of dividends to preferred and common shareholders for 2018 and 2019 if total dividends are $11,000 in 2018 and $49,000 in 2019. Compute the dividends for 2018, then for 2019. (Complete all answer la Data Table Class of Stock 2019 2018 11,000 Preferred $ Tri State Telecom, Inc. Common Stockholders' Equity $ 11,000 $ 49,000 Total Paid-in capital: 100,000 Preferred stock, 12%, $5 par, 100,000 shares authorized, 20,000 shares...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT