0
Cumulative preferred dividends in arrears should be shown in a corporation's balance sheet as?
Wiki User
∙ 11y ago
In a footnote
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Dividends in arrears on cumulative preferred stock should be recorded as a current liability?
No, no payment obligation exists until the board of directors declares a dividend.
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?
Does preferred stocks mean that the company is preferred over other companies in a particular industry?
Preferred stock, also called preferred shares, preference shares, or simply preferreds, is a special equity security that has properties of both an equity and a debt instrument and is generally considered a hybrid instrument. Preferreds are senior (i.e., higher ranking) to common stock, but are subordinate to bonds.[1]Preferred stock usually carries no voting rights,[2] but may carry a dividend and may have priority over common stock in the payment of dividends and upon liquidation. Preferred stock may have a convertibility feature into common stock. Terms of the preferred stock are stated in a "Certificate of Designation".Similar to bonds, preferred stocks are rated by the major credit rating companies. The rating for preferreds is generally lower since preferred dividends do not carry the same guarantees as interest payments from bonds and they are junior to all creditors.[3Preferred stock is a special class of shares that may have any combination of features not possessed by common stock.The following features are usually associated with preferred stock[4]Preference in dividends.Preference in assets in the event of liquidation.Convertible into common stock.Callable at the option of the corporation.Nonvoting.In general, preferreds have preference to dividends payments. A preference does not assure the payment of dividends, but the company must pay the stated dividend rate prior to paying any dividends on common stock.[4]Preferred stock can either be cumulative or noncumulative. A cumulative preferred stock requires that if a company fails to pay any dividend or any amount below the stated rate, it must make up for it at a later time. Dividends accumulate with each passed dividend period, which can be quarterly, semi-annually, or annually. When a dividend is not paid in time it is said that the dividend has "passed" and all passed dividends on a cumulative stock is a dividend in arrears. A stock that doesn't have this feature is known as a noncumulative or straight[5] preferred stock and any dividends passed are lost forever if not declared.[6]
How do you calculate EPS with convertible bonds and convertible preferred stock outstanding?
I think you are talking about the diluted EPS. You have to think : what if ? i.e. to assume that all bonds and preferred stock have been converted to Comon stock. Basic EPS is usually calculated by the formula : IACS / The weighted average for the outstanding Common stock. (IACS is the income available for common stock - after paying the interest to bond and paying dividends to preferred stock , even dividends in arrears for Preferred stock) the diluted EPS is calculated by assuming that all have been converted to Common stocks , you have to : - Increase the numerator (IACS) by adding the interest payable to the converted bond plus the dividends payable to the converted preferred stock. - Increase the denominator (weighted average of outstanding common stock) by adding the number of the new common stock converted. the result is the diluted EPS. I think it is a disclosure obligation for the firms to show its normal EPS and diluted EPS to its investor. the diluted EPS could be less than the normal, and this is a kind of risk for the comon stock shareholders. hope i was able to answer this question simply and correctly. best regards wesaam Damascus - Syria.
Request for arrears and increment of salary?
arrears
What is SOA an abbreviation for on child support arrears?
statement of arrears
Are veterans administration benefits paid in advance or arrears?
Arrears
What is meant by history of arrears in engineering?
A history of arrears means you have a backlog of tests that you have not cleared.
What does Arrears have to do with loans?
Arrears are part of a debt that is overdue. In loans, you have arrears if you are behind on payments. You can get more information about arrears online at the Wikipedia. Once on the page, type "Arrears" into the search field at the top of the page and press enter to bring up the information.
When can you stop paying interest on back child support?
If interest is accruing that means there must be arrears. The interest will stop accruing when the arrears are paid off.If interest is accruing that means there must be arrears. The interest will stop accruing when the arrears are paid off.If interest is accruing that means there must be arrears. The interest will stop accruing when the arrears are paid off.If interest is accruing that means there must be arrears. The interest will stop accruing when the arrears are paid off.
What state's pay taxes in arrears?
what states pay taxes in the arrears
Are Texas property taxes paid in advance or arrears?
At least in Austin, they are paid in arrears.
