Paying dividends to common stockholders

Related BrainMass Solutions

• Finance MCQ: Common, preferred stock, equity capital, cumula

  a fixed periodic dividend that must be paid prior to paying any common stock dividends. 1.

• Right or Attribute of Preferred Stocks

  Preferred stock is given that name because preferred stockholders have a priority claim to dividends relative to the common stock's claim to dividends (i.e., if the corporation cannot pay both common and preferred shareholders, it must pay the preferred

• Maximum Amount of Dividend and Stockholders Equity

  A firm cannot pay dividends from its legal capital. a. If the legal capital is the par value of the common stock, then the amount available for paying the dividends is paid in capital in excess of par and the retained earnings.

• economic differences between holders of different stocks

  The board of directors, however, is allowed to forego paying dividends if it feels that doing so is against the best interests of the corporation.

• Bond and Preferred Stock

  The dividend per year is $12 and since it is cumulative dividends, all dividends in arrears should be paid before paying common stockholders. The total year in arrear are past two and current year - 3 years.

• Silva Company

  Paid $2,000 cash dividends to stockholders. Record the above transactions in general journal format.

• Why is preferred stock referred to as "preferred"?

  The central part is that the preference in paying the dividends are always made before any dividend can be declared on the common shares.

• Multiple Choice Questions: Working Capital, Dividends, Stock

  As of the beginning of this fiscal year, there were 2 years' dividends in arrears on the preferred stock. The board of directors wants to give the common stockholders a $1.50 dividend per share at the end of this fiscal year.

• Dividend Computations

  Determine the total of 2003 dividends the common stockholders should receive. 2.