Accumulated dividend, Corporate Finance

Assignment Help:

It is a dividend on a share of cumulative preferred stock that has not still being paid to the shareholder. Accumulated dividends are the product of dividends that are carried forward from earlier periods and shareholders of cumulative preferred stock get dividends before any other shareholders.

Preferred stock can either be "non-cumulative", which is conventionally the case or "cumulative" when it comes to dividends. Non-cumulative shares are allowed to dividends only if dividends are confirmed. Some investors may want a sure return on a preferred stock. A cumulative preferred stock permits the investor to gain dividends despite of the company's capability to pay them immediately or in the future. In several instances, when a few companies are not in a financial position to pay a dividend during a certain year, accumulated dividends are produced. These dividends should be paid before any other dividends can be given. 


Related Discussions:- Accumulated dividend

Agency issue, you have just been hired as a financial managher of a company...

you have just been hired as a financial managher of a company that moulds bricks.the firm does not have a proper corporate governance structure.you ar to advice board of directors

Lrr, how do you calculate it

how do you calculate it

Net present value of project, Net present value of this project: ...

Net present value of this project: The following I/S is based on the information associated with a new project. Answer the questions. Projected Income Statem

Analytical derivation of the capital asset pricing model, Question: a) ...

Question: a) Give an analytical derivation of the Capital Asset Pricing Model (CAPM) and supplement your analysis with diagrammatic illustrations where appropriate. b) The

Definition of electronic banking and electronic money, Question: (a) G...

Question: (a) Give a definition of electronic banking and electronic money. (b) Outline the main differences between smart cards, credit cards and debit cards. (c) Giv

Do mergers encourage the formation of new banks, Do mergers encourage the f...

Do mergers encourage the formation of new banks? A: Yes. The rise in the number of new banks in the second half of the 1990s coincides with a surge in merger activity in the

IRR & WACC, I have been given 3 different types of projects. They state th...

I have been given 3 different types of projects. They state the IRR and how much the project will add. The question goes on to give a WACC with break points. The question wants

Divident, Critically appraise how companies set their dividend policies, an...

Critically appraise how companies set their dividend policies, and explain the factors that a company will consider in setting its dividend policy and in determining the level of d

evaluate the critical success factors, 1)   Select an organization that yo...

1)   Select an organization that you are familiar with and evaluate the steps needed to  transform  the business plans into Balance Score Cards & Key Performance Indicators 2)

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd