Is bender entitled to dividends

Assignment Help Operation Management

Reference no: EM132261552

Alex Bender is the owner of noncumulative 8 percent preferred stock in the Cyclone Corporation, which had no earnings or profits in 2010. In 2011, the corporation had large profits and a surplus from which it might properly have declared dividends. However, the directors refused to do so, using the surplus instead to purchase goods necessary for the corporation's expanding business. The corporation earned a small profit in 2012. The directors at the end of 2012 declared a 10 percent dividend on the common stock and an 8 percent dividend on the preferred stock without paying preferred dividends for 2011.

a. Is Bender entitled to dividends for 2010 For 2011?

b. Is Bender entitled to a dividend of 10 percent rather than 8 percent in 2012?

Please explain.

Reference no: EM132261552

Questions Cloud

Compare emerging markets on variety of dimensions : Michigan State University Center for International Business Education and Research (MSU-CIBER) to compare emerging markets on a variety of dimensions.

Innovation efforts of firm often benefit from partnering : Innovation efforts of the firm often benefit from partnering with non-business entities such as universities and government agencies.

What is ethics and how do morals : In Healthcare Informatics, what is ethics and how do morals, values, and virtues apply to healthcare informatics?

Female athlete differently from more traditional media genre : How does the internet portray female athletes differently from the more traditional media genre?

Is bender entitled to dividends : Is Bender entitled to dividends for 2010 For 2011? Is Bender entitled to a dividend of 10 percent rather than 8 percent in 2012?

Corporation has refused to make the cash payment : The corporation was formed and Sayre's stock issued to him, but the corporation has refused to make the cash payment.

Create an athenahealth marketing plan : Create an Athenahealth Marketing Plan with the following elements: implementation, control, budget, timing, and contingency plans.

Would you investigate customer complaints further : Your company is growing and there are new customers and some new sales people. Would you investigate customer complaints further?

Vehicle maintenance is to use periodic oil analysis : Fleet managers have a large pool of cars and trucks to maintain.13 One approach to the vehicle maintenance is to use periodic oil analysis:

User Account

All Pages