Cash Dividends a Cumulative regular dividends to preferred stockholders omitted

Cash dividends a cumulative regular dividends to

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5.Cash Dividends: a.Cumulative: regular dividends to preferred stockholders omitted in past b.Dividend Date years (dividends in arrears), plus the preferred stockholders current year’s regular dividend, must be paid to preferred stockholders before any dividends are paid to common stockholders. Dividends in arrears are not a liability until a dividend is declared i. Declaration Date Cash Dividends Declared Cash Dividends Payable ii. Date of Record: the date, specified when dividends are declared, that is used to determine entitlement to dividends. Stockholders owning shares of stock on the date of record are entitled to the
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dividends. Those acquiring shares after the date of record are not entitled to the dividend (stock is sold ex-dividend). -No Entry_ iii. Date of Payment Cash Dividends Payable Cash 6.Other Characteristics of Preferred Stock: common stock at the option of the holder stated price at the option of the corporation option of the stockholder. to purchase common stock at a stipulated price and remain a preferred stockholder.
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  • Fall '14
  • CarolRowey
  • Dividend

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