Dividends are paid from a company's after-tax earnings Common stockholders are the residual claimants, meaning that if the company is liquidated the common stockholders are last in line to get any payment. Some companies have two classes of stock, with the company's founders holding shares that get 10 votes per share and the investing public holding shares that get 1 vote per share common stock pays a fixed dividend that continues indefinitely common stockholders elect the board of directors.

Q: Is it true or false that corporations muse issue common stock, but may or may not decide to issue…

A: It is the decision taken by board of directors whether to issue preference shares/stock.

Q: A firm’s preferred stock often sells at yields below its bonds because:a. Preferred stock generally…

A: The preferred stock pays income in form of periodic dividend and treated as an equity component..…

Q: A company has cumulative preferred stock. When computing earnings per share, the current year's…

A:

Q: Which one of the following statements apply only to preference shareholders and not to equity…

A: Preference shares and equity shares are two common classes of shares. They have some distinct…

Q: Which of the following statement is false in regards to Share premium? a. It will be shown under…

A: (a) Share premium will be shown under equity section in the balance sheet (b) Share premium will be…

Q: of the following statements pertain to dividends. Which of them is (are) true? a. Shareholders vote…

A: The dividend is declared to the shareholders from the retained earnings of the business.

Q: The prescribed accounting treatment for stock dividends implicitly assumes that shareholders are…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Calculate the preferred and common dividend per share (in $) for the company. (If there is no…

A: Dividend payout Policy While declaring the dividend of the entity first preference to preference…

Q: Which of the following statements is CORRECT? Select one: a. Stock splits create more administrative…

A: Stock Split- In a stock split, existing shares split but the underlying cost remains the same. As…

Q: Which one of the following statements is the most correct? A. Preferred stock has a fixed dividend…

A: Preferred stock function as bond and are usually guaranteed a fixed payment in the form of dividends…

Q: Which of the following statements are false? (you may choose more than one statement)        A…

A: Option A. is False The issue of ordinary shares will not dilute ownership of the company. Option C.…

Q: hich of the following statements is CORRECT?   a.  Preferred stockholders have a priority over…

A: Preferred stock hoders enjoys certain privileges which make them senior to common stockholders.

Q: Calculate the preferred and common dividend per share (in $) for the company. (If there is no…

A: Annual Preferred dividends = 1,000,000 shares x $100 x 7% = $7,000,000 Preferred shareholders are…

Q: Calculate the preferred and common dividend per share (in $) for the company. (If there is no…

A: Answer) Calculation of Preferred Dividend per share Preferred Dividend per share = Preferred…

Q: When comparing common and preferred stock, indicate whether each of the following statements is true…

A: 1. False the preferred shareholders get guaranteed dividend but not higher than common stockholders…

Q: Which of the following terms are most likely to appear in the owners' equity section of a corporate…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which statement is FALSE? O A. Preferred stockholders receive assets before the common stockholders…

A: The preference shareholders are also known as preferred stock boulders. The stockholders have the…

Q: Many executives own shares in the companies they manage and are also in high tax brackets. When…

A: Here there is a conflict of interest between the owners (i.e. the shareholders) and the agents (the…

Q: What is the distinction between that of Paid-in-Capital and Retained Earnings, in both differences…

A: Paid in capital means the amount contributed by share holder in company as share capital Retained…

Q: P30 per share B.Dividends cannot legally be reinvested in the same company where they were earned…

A: 1) There is no fixed range of dividend payable by a company. It differs from on company to another.…

Q: Types of common stock True or False: In some cases, individuals who start a business have special…

A: A type of publicly traded security that provides ownership and voting rights to its holder is term…

Q: Calculate the preferred and common dividend per share (in $) for the company. (If there is no…

A: This question provides dividend amount $ 300000 which related to common equity shares and preference…

Q: Which of the following statements regarding dividends in arrears is false? a.  Total dividends in…

A: Dividend is a share in profits of the company distributed among the shareholders.

Q: results in higher dividends per share. b. is included in every corporate charter. c. allows managers…

A: Shareholders are owners of business they are owner of business by amount of shares they hold so it…

Q: From pages 10-2 and 10-3 of the VLN, when a corporation goes to the stock market and buys the…

A: Treasury stock is the stock recorded at the cost price in books when company buys its own shares…

Q: Cumulative preferred stock gives its owners a right to be paid both the current and all prior…

A: Introduction: Cumulative preferred stock is one sort of preferred stock; a preferred stock normally…

Q: Calculate the preferred and common dividend per share (in $) for the company. (If there is no…

A: Total Cash dividend paid = $ 5000000 Dividend per share = Total dividend / Number of shares

Q: The directors of Merchant Corporation are considering the issuance of a stock dividend. They have…

A:

Q: f a corporation fails to declare a dividend on cumulative preferred stock in a given year, the div

A: Dividend in arrear represents the company would not be able to generate enough money to distribute…

Q: Which of the following statements is true?a. The outstanding number of shares is the maximum number…

A: Shares outstanding allude to a corporation's stock that is currently occupied by all of its…

Q: A document that gives a designated agent the right to vote a stockholder's shares of stock. The date…

A: Decision of cash dividend payment is made by the directors of the company.; And there are three…

Q: statements correctly relate to ordinary shares? i) They represent an ownership interest. ii)…

A:

Q: Which of the following is FALSE regarding preferred stock Preferred dividends are generally fixed…

A: Preferred stock –they are shares of a company that gives the long term source of finance to the…

Q: Regarding cumulative preferred share dividend payments by corporations, which of the following is…

A: Cumulative preferred share dividends can be defined as those dividends paid to preference…

Q: A major difference between common and preferred stock Seleccione una: a. is that common stockholder…

A: Common stock and preferred stock are different. Common stock is stock that holds the ownership in…

Q: Although Oriole Company has enough retained earnings legally to declare a dividend, its working…

A: 1.  Oriole Company   Stockholders Equity   Common Stock $10 Par                 575,000…

Q: Stock dividends and stock splits are similar in that both do not change total stockholders’ equity.…

A: While attempting True or False questions, it is of utmost importance, to first understand the…

Q: When a business is organized as a corporation, which of thefollowing statements is true?a.…

A: When the business is organised as a corporation, then persons who acquire shares in the corporation…

Q: Which of the following statements is false? a. one of the disadvantages of incorporation is the…

A: Corporation:A business concern where there is a separate legal entity, and are owned by…

Q: Which of the following is a characteristic of common stock? a. The right to the residual income…

A: The main source of finance for companies are debt and equity. Equity shares are of two types: common…

Q: All other things equal, what is the effect on eamings per share when a corporation acquires shares…

A: Lets start with basic understanding. Earning Per Share (EPS) is the earning available per share of…

Q: Which of the following is not a typical question that must be answered with regard to a private…

A: Company is owned by the shareholders of company but management is done by managers and directors of…