What type of stock pays dividends in arrears? A. Nonminus−cumulative preferred stock B. Cumulative preferred stock...
What type of stock pays dividends in arrears?
A.
Nonminus−cumulative
preferred stock
B.
Cumulative preferred stock
C.
Nonminus−cumulative
common stock
D.
Cumulative common stock
Homework Answers
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Option B is the answer Cumulative preferred stock Cumulative preferred shares are the preferred shares which carry with them, the guarantee of getting dividend paid by the company in the coming years even if the company doesn't earn enough in the present year |
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What type of stock pays dividends in arrears?
A.
Nonminus−cumulative
preferred stock
B.
Cumulative preferred stock...
In determining basic earnings per share for a year, dividends in arrears on cumulative preferred stock...
In determining basic earnings per share for a year, dividends in arrears on cumulative preferred stock should be Select one: O a. added back to net income whether declared or not. ОО b. disregarded. C. deducted from net income whether declared or not. d. deducted from net income only if declared.
Instructions Answer the questions in each (a) If the preferred stock the dividends in arrears that...
Instructions Answer the questions in each (a) If the preferred stock the dividends in arrears that the questions in each of the following independent situations. le preferred stock is cumulative and dividends were last paid on the preferred stock on December stpaid on the preferred stock on December 31, 2014, what ar ember 31, 2017, balance sheet? How should these dividend be reported? e basis of the explanation for each entry, prepare the entries that should have been E15-9 (L01,3)...
Robbins Petroleum Company is four years in arrears on cumulative preferred stock dividends. There are 800,000...
Robbins Petroleum Company is four years in arrears on cumulative preferred stock dividends. There are 800,000 preferred shares outstanding, and the annual dividend is $6.50 per share. The Vice-President of Finance sees no real hope of paying the dividends in arrears. She is devising a plan to compensate the preferred stockholders for 90 percent of the dividends in arrears. a. How much should the compensation be? (Do not round intermediate calculations. Input your answer in dollars, not millions (e.g. $1,234,000).)...
Robbins Petroleum Company is four years in arrears on cumulative preferred stock dividends. There are 880,000...
Robbins Petroleum Company is four years in arrears on cumulative preferred stock dividends. There are 880,000 preferred shares outstanding, and the annual dividend is $9.50 per share. The Vice-President of Finance sees no real hope of paying the dividends in arrears. She is devising a plan to compensate the preferred stockholders for 90 percent of the dividends in arrears. a. How much should the compensation be? (Do not round intermediate calculations. Input your answer in dollars, not millions (e.g. $1,234,000).)...
Question 2 If a corporation has dividends in arrears of $25,000 on its cumulative preferred shares,...
Question 2 If a corporation has dividends in arrears of $25,000 on its cumulative preferred shares, it must: Pay the dividends in arrears before it can pay dividends to its common shareholders. Set aside cash for the amount of the dividends. Capitalize this amount as a part of permanent capital. Appropriate retained earnings for this amount.
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...
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...
A liability for dividends exists: Multiple Choice When cumulative preferred stock is sold. On the date...
A liability for dividends exists: Multiple Choice When cumulative preferred stock is sold. On the date of declaration. On the date of record. On the date of payment. For dividends in arrears on cumulative preferred stock.
Dividends Paid and Dividends in Arrears The Glendora Company has 200,000 shares of cumulative, five percent,...
Dividends Paid and Dividends in Arrears The Glendora Company has 200,000 shares of cumulative, five percent, $100 par value preferred stock outstanding. Last year the company failed to pay its regular dividend, but the board of directors would like to resume paying its regular dividend this year. Calculate the dividends in arrears and the total dividend that must be paid this year. Dividend in arrears $ Total dividend $
Problem 17-20 Preferred stock dividends in arrears and valuing common stock [LO17-5] Enterprise Storage Company has...
Problem 17-20 Preferred stock dividends in arrears and valuing common stock [LO17-5] Enterprise Storage Company has 620,000 shares of cumulative preferred stock outstanding, which has a stated dividend of $8.65. It is six years in arrears in its dividend payments. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. How much in total dollars is the company behind in its payments? (Do not round intermediate calculations. Input your answer...
In determining basic earnings per share for a year, dividends in arrears on cumulative preferred stock should be Select one: O a. added back to net income whether declared or not. ОО b. disregarded. C. deducted from net income whether declared or not. d. deducted from net income only if declared.
Instructions Answer the questions in each (a) If the preferred stock the dividends in arrears that the questions in each of the following independent situations. le preferred stock is cumulative and dividends were last paid on the preferred stock on December stpaid on the preferred stock on December 31, 2014, what ar ember 31, 2017, balance sheet? How should these dividend be reported? e basis of the explanation for each entry, prepare the entries that should have been E15-9 (L01,3)...
Question 2 If a corporation has dividends in arrears of $25,000 on its cumulative preferred shares, it must: Pay the dividends in arrears before it can pay dividends to its common shareholders. Set aside cash for the amount of the dividends. Capitalize this amount as a part of permanent capital. Appropriate retained earnings for this amount.
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...
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...
Dividends Paid and Dividends in Arrears The Glendora Company has 200,000 shares of cumulative, five percent, $100 par value preferred stock outstanding. Last year the company failed to pay its regular dividend, but the board of directors would like to resume paying its regular dividend this year. Calculate the dividends in arrears and the total dividend that must be paid this year. Dividend in arrears $ Total dividend $
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