Considering the same amount of earnings available for declaration as dividends, which of the following kinds of preference shares would result to the least amount of dividends for preference shareholders? cumulative and non-participating cumulative and participating non-cumulative and non-participating non-cumulative and participating
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Considering the same amount of earnings available for declaration as dividends, which of the following kinds of
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- How much is the dividend allocation for ORDINARY shareholders considering - Preference shares are non-cumulative and non-participating?Dividends on Preference and Ordinary Shares Required: Calculate the amount of dividends received by preference and ordinary shareholders, respectively, under each of the following assumptions.Calculate the amount of dividends to be paid to preferred and common shareholders assuming preferred shares are cumulative and non participating
- The cost of dividend payable on redeemable preference shares should be included in______. Select one: a. in the statement of income after identifying profit after tax b. in the statement of income before identifying the profit before tax c. as a deduction in the statement of changes in equity d. in the statement of income as a deduction prior to identifying profit from operationsWhat are dividends in arrears? How do they affect the allocation of dividends to preference and ordinary shareholder if: Preference share capital are noncumulative Preference share capital are cumulativeWhen computing the basic earnings per share in a structure where there are cumulative preference shares, the net income to ordinary shares is equal to the actual net income of the company a. Add current dividend for preference shares whether declared or not b. Less current dividend for preference shares whether declared or not c. Less current dividend for preference shares only when declared d. Less current and previous dividend for preference shares declared or not e. Add current dividend for preference shares only when declared
- Compute for the total amount of dividend given in the individual assumptions allocated for ordinary shares. h. Preference share capital is cumulative and nonparticipating i. Preference share capital is cumulative and participating j. Preference share capital is cumulative and participating up to 8%Identify which category of shareholder's equity is affected by each item and briefly explain how it is affected. Restricted retained earnings by making an entry equal to the cost of treasury shares purchased.the total shareholders' equity after the declaration of hare capital dividend a. is greater than the total shareholders' equity before the declaration b. may be more than or less than the total shareholders' equity before the declaration depending on whether the share capital dividend declared is small or large c. is the same as the total shareholder's equity before the declaration d. a less than the total shareholders' equity before the declaration
- The total shareholders' equity after he declaration of hare capital dividend. a. may be more than or less than the total shareholders' equity before the declaration depending on whether the share capital dividend declared is small or large b. is less than the total shareholders' equity before the declaration c. is the same as the total shareholders' equity before the declaration d. is greater than the total shareholder's equity before the declarationPreference share that is given a right to share with the ordinary share in dividends in excess of a stated dividend rate is said to be * a. cumulative b. participating c. non cumulative d. non participatingWhen a preference share is cumulative and non-participating Any dividends not distributed from the previous distribution would not be distributed anymore and any excess from the dividends to be distributed would go to ordinary shareholders. Any dividends not distributed from the previous distribution would be distributed also to the preference shareholders for current year along with the current year dividends and any excess from the dividends declared will be divided to both the preference and ordinary shareholders base on their total par value Any dividend not distributed from the previous distribution would be distributed also to the preference shareholders for current year along with the current year dividends and any excess from the dividends declared will all go to preference shareholders Any dividend not distributed from the previous distribution would be distributed also to the preference shareholders for current year along with the current year dividends and any…