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Are preferred dividends declared and paid added to net income in calculating net cash flow from operating activites using the indirect method?
Wiki User
∙ 10y ago
Dividend declared and paid is shown under cash flows from financing activities in cash flow statment as it is not primary operating activity of business.
Wiki User
∙ 10y ago
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Number of times preferred dividends earned?
net income/preferred dividends
Preferred dividends are subtracted from earnings?
Yes.
What guarantees dividends will be paid to its owners?
preferred stocks
What is the difference between dividends paid on common stock and preferred stock?
Dividends for preferred stockholders are often stated in advance and do not tend to fluctuate as much as those for common stock.
Why are preferred dividends deducted from net income when calculating EPS?
Earning per share is calculated with net income available to ordinary share holders only so as preferred dividend is not part of ordinary shareholders that's why it is deducted to find out the net income exclusively available for ordinary shareholders.
A big advantage of preferred stock is that preferred stock dividends are tax deductible for the issuing corporation?
Not in the US, anyhow.
How do you compute number of times preferred dividends are earned?
The number of times preferred dividends are earned is computed by dividing the total number of payouts by the term. Most are paid out quarterly but vary based on the market conditions.
What describes the difference between common stock and preferred stock?
Preferred stock pays out earnings at fixed, regular dividends
What are some features of preferred stock?
Fixed dividends No right to vote No maturity
What accurately describes the difference between common stock and preferred stock?
Preferred stock pays out earnings at fixed, regular dividends
Cumulative preferred dividends in arrears should be shown in a corporation's balance sheet as?
In a footnote
Determine the dividends per share for preferred stock and common stock?
$32,000 on the preferred dividends in arrears 2 years $16,000 on the preferred dividends in arrears in the current year preferred stock = 200,000 shares of 8% cumulative and participating, $10 par value common stock = 800,000 shares of $10 par value. The Company wants to issue $80,000 to the preferred stock holders, with a 15% participation. How much is the Company going to pay the common stockholders? How much is the total dividend payout?
