FALSE!
Outstanding stock is an "owner's equity" account. It's on the same side of the accounting equation as liabilities, but it is not a liability.
Capital stock is part of liability
current liability
Because the dividend is only available for distribution; It has not been declared.
no
No, no payment obligation exists until the board of directors declares a dividend.
FALSE!
Outstanding stock is an "owner's equity" account. It's on the same side of the accounting equation as liabilities, but it is not a liability.
Capital stock is part of liability
current liability
Preferred stock is valued as a perpetuity
11.90
Because the dividend is only available for distribution; It has not been declared.
$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?
A preferred stock is a stock where a public traded company or industry owns most of the stock. Preferred stocks have a claim on capital in the event of complete liquidation.
Sometimes preferred stock is "convertible." Shareholders who own convertible preferred stock may, at a price announced when the stock is purchased, turn in their preferred stock and receive common stock in its place.