Dividends in arrears
When preferred stock, is cumulative, preferred dividends not declared in a given period are called dividend in arrears.
To illustrate, assume that scientific leasing has 5000 shares of 7% is $35,000 (5,000 but dividends are two years in arrears. In this case, preferred stockholders are entitled to receive the following dividends in the current year.
Dividends in areas (35,000 $70,000
Current-year dividends 35,000
Total preferred dividends $105,000
More from this Section
- Operational Audit
Operational Audit is an extension of internal auditing to all the operations and the activities ... - Accelerated-depreciation method
Accelerated-depreciation method is a depreciation method that produces higher depreciation ... - Materiality & Materiality principle
Materiality refers to the impact of an items’ size on a company’s financial operations. ... - Limited partner & Limited partnership
Limited partner is a partner whose liability for the debts of the firm is limited to that ... - Dividends in arrears
When preferred stock, is cumulative, preferred dividends not declared in a given period ...