When comparing common and preferred stock, indicate whether each of the following statements is true or false. Preferred shareholders are guaranteed to receive a higher dividend amount than common shareholders. Choose... + In a year in which dividends are declared, preferred stockholders receive their portion of dividends before Choose... + common stockholders receive theirs. Preferred shareholders are guaranteed to receive a dividend in any year in which the corporation makes a Choose... + profit. For purposes of electing the company's board of directors, only preferred shareholders usually have a vote. Choose... +

When comparing common and preferred stock, indicate whether each of the following statements is true or false. Preferred shareholders are guaranteed to receive a higher dividend amount than common shareholders. Choose... + In a year in which dividends are declared, preferred stockholders receive their portion of dividends before Choose... + common stockholders receive theirs. Preferred shareholders are guaranteed to receive a dividend in any year in which the corporation makes a Choose... + profit. For purposes of electing the company's board of directors, only preferred shareholders usually have a vote. Choose... +

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What does it mean when preferred stock has a cumulative feature? A.A dividend must be paid to the preferred stockholders each year. B. A dividend cannot be paid to the common stockholders. C. If dividends were not paid to preferred stockholders in previous years, these dividends must be paid before any dividends are paid to the common stockholders. D. The stockholders have the right to share in extra dividends. Please explain why the option is correct and remaining incorrect in detail explain each and every option in detail with explanation
A corporation with both preferred stock and common stock outstanding has a substantial credit balance in its retained earnings account at the beginning of the current fiscal year. Although net income for the current year is sufficient to pay the preferred dividend of $150,000 each quarter and a common dividend of $90,000 each quarter, the board of directors declares dividends only on the preferred stock. Suggest possible reasons for passing the dividends on the common stock.
9-Evaluate the following statements about preferred stock. I. For the issuer, preferred stock dividends are tax deductible.II. Preferred stock dividends can be cumulative or noncumulative.III. Preferred stock shares have a stated liquidating value. Group of answer choices I and II are correct. I and III are correct. II and III are correct i, II and III are correct.11- San Diego Power is considering a project that its CFO was surprised to find out that it has two different discount rates at which the project has a zero NPV. In this situation, the San Diego Power project is said to:
Cumulative preferred stock gives its owners a right to be paid both the current and all prior periods' unpaid dividends before any paid to common stockholders. True or False True False
Which of the following show the proper effect of a stock split and a stock dividend? Stock Dividend Item Total paid-in capital Item Par value per share Item Total retained earnings Item Total par value (common) Stock Split Increase Stock Split Decrease Stock Split Decrease Stock Split Decrease Increase Stock Dividend No change Stock Dividend Decrease Stock Dividend Increase
If a corporation fails to declare a dividend on cumulative preferred stock in a given year, the dividends in arrears accumulate from period to period. the dividends in arrears are recorded as liabilities. the common shareholders may still receive dividends in the current year. all of these options apply.
At what percentage point can the issuance of additional shares still qualify as a stock dividend, as opposed to a stock split?
ESPAÑOL INGLÉS FRANCÉS The distribution of a dividend that represents a partial return of the original investment made by the shareholders is known as to. participating dividend. b. liquidating dividend. C. property dividend. Enviar comenta Guardado Contribuir MacBook Ai
Shareholders choose to invest in preferred shares because: a. preferred shares can always be converted into ordinary shares at the shareholder's option b. preferred shares include the right to participate in management decisions through voting privileges c. dividends are distributed to preferred shareholders before ordinary shareholders d. the preferred dividend distributions are generally increased each year
Which of the following statements regarding preferred stock is true? a.Dividends are guaranteed to preferred stockholders. b.Preferred stockholders have a lower chance of receiving dividends than common stockholders do. c.When only one class of stock is issued, it is called preferred stock. d.Cumulative preferred stock has a right to receive regular dividends that were not declared (paid) in prior years.
Share options granted by a corporation are recorded as expense on the number of options that a are initially granted. b are vested. c are eventually exercised. d are expected to be exercised. Non-market based performance conditions include vesting based on achieving all of the following except a achieving a specific growth in revenue b achieving a specific growth in net profit c achieving a specific increase in EPS d achieving a specific target share price Statement 1: Share options granted that vest base on performance condition to the key employees of the business wherein they need to achieve an increase in the share price will recognize fully the compensation expense over the vesting period regardless the condition is met or not.Statement 2: Share options that are granted without fair value on the grant date will recognize compensation expense within the vesting period only. a True,False b False, True c True, true dFalse, false
In calculating earnings per share, a company uses the treasury stock method when a. it recognizes the assumed impact of exercising outstanding warrants. b. it develops a methodology to handle the premium paid on exercised share options. c. it needs to value the cash received for a convertible bond. d. it needs to value treasury stock repurchased during the year.