Question

Are dividends paid to bondholders?

Are dividends paid to bondholders?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The answer is No. dividends are not paid to bondholders.

Dividends are paid to common stockholders, where as bond holders are paid with interest. Bondholders cannot claim any share of profits in addition to interest payments. Bond holders lend money to the company and in return they receive interest. They do not have ownership in the company so the company is not obliged to pay any dividends to bond holders.

Whereas common stockholders participate in ownership and so have right over the profits. Issue of profits to shareholders is known as dividends.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Discussion Topic: In this discussion, we will examine the taxation of dividends. Should dividends paid to...
Discussion Topic: In this discussion, we will examine the taxation of dividends. Should dividends paid to corporations be taxed differently than dividends paid to individuals? Why or why not?
x corporation pay dividends at the end of the year . The dividends that it paid...
x corporation pay dividends at the end of the year . The dividends that it paid for 2012 2013 and 2014 were $160,000 1$120,000 and $360,000 respectively . calculate the total amount of dividends x corporation paid in each of the years to its common and preferred stockholders under the following capital structure. 20,000 shares of $100 par, 7 percent cumulative preferred stock and 120,000 shares of $10 par common stock . x corporation had no dividends in arrears at...
QUESTION 19 Dividends per share is equal to: A. Dividends paid divided by the par value...
QUESTION 19 Dividends per share is equal to: A. Dividends paid divided by the par value of common stock. B. Dividends paid divided by the total number os shares outstanding. C. Dividends paid divided by the total stockholders' equity. D. Dividends paid multiplied by the par value of common shares. QUESTION 3 Marginal costs ______________. A. change as a function of the sales made in a given time period B. (for a given time period) are constant no matter the...
A company paid dividends of $0.74 last year and are due to pay dividends again today....
A company paid dividends of $0.74 last year and are due to pay dividends again today. Today's dividends will be 4.1% higher than last year's. It is expected that this dividend payment amount will remain for the life of the business. The shares of this company currently return 18.6% per annum to shareholders. Based on this information, calculate the share price (p) for the company immediately after today's dividends are paid.
If bondholders expect the Fed to raise the interest rates what action(s) might the bondholders take?...
If bondholders expect the Fed to raise the interest rates what action(s) might the bondholders take? You may discuss what other individuals might due in this situation. Explain your rationale. 200 words
If bondholders expect the Fed to raise the interest rates what action(s) might the bondholders take?...
If bondholders expect the Fed to raise the interest rates what action(s) might the bondholders take? You may discuss what other individuals might due in this situation. Explain your rationale. 200 words
On November 20 the company declared cash dividends of $15,000. The dividends were paid on December...
On November 20 the company declared cash dividends of $15,000. The dividends were paid on December 21. Make the journal entries necessary to record both events. Which ONE of the following should be included in the journal entry necessary to record the PAYMENT of the dividends on December 21? DEBIT Cash for $15,000 DEBIT Operating Expenses for $15,000 DEBIT Common Stock at Par for $15,000 DEBIT Paid-in Capital in Excess of Par for $15,000 DEBIT Dividends Payable for $15,000
Explain the conflict between stockholders and bondholders.
Explain the conflict between stockholders and bondholders.
Ameritech Corporation paid dividends per share of $3.56 in 2018, and dividends are expected to grow...
Ameritech Corporation paid dividends per share of $3.56 in 2018, and dividends are expected to grow 5.5% a year forever. The investors’ required rate of return is 10%. What is the value per share, using the Gordon Growth Model? The stock is trading for $80 per share. What would the growth rate in dividends have to be to justify this price?
1- The constant perpetual growth model assumes the: A- dividends are paid for a stated number...
1- The constant perpetual growth model assumes the: A- dividends are paid for a stated number of years only. B- net income is all paid out in dividends. C- growth rate is less than the discount rate. D- dividends are constant in amount. E- discount rate increases at a constant rate.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT