Question

what is Shares and Dividends mean

what is Shares and Dividends mean

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Shares are a way of raising funds from the Public investors or held by promoters. Share is a unit which has a par value and is bought and sold at Market price. There are two types of shares i.e., Common Stock and Preferred Stock. Preferred Stock holders' has more preference with respect to payment of dividend or repayment of principal than Common stock holders'

Dividend is the amount that is distributed among the shareholders'. It is a return to shareholders' for their investment in the company. Dividends are proposed by Board of Directors and is authorised by shareholders' in the genral meetings. Dividends are paid out of Retained Earnings.

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
The cumulative feature of preference shares a. limits the amount of cumulative dividends to the par...
The cumulative feature of preference shares a. limits the amount of cumulative dividends to the par value of the preference shares. b. requires that preference dividends not paid in any year must be made up in a later year before dividends are distributed to ordinary shareholders. c. means that the shareholder can accumulate preference shares until it is equal to the par value of ordinary shares at which time it can be converted into ordinary shares. d. enables a preference...
Inc. has 1,000, 000 shares with Dividends $3.20 cumulative Preferred Stocks and 4,000,000 Common Stock Shares...
Inc. has 1,000, 000 shares with Dividends $3.20 cumulative Preferred Stocks and 4,000,000 Common Stock Shares . After 1 year in arrears, Inc. declared $8,200,000 in dividends. What is the preferred stock dividend per share ? What is the common stock dividend per share?
Are investments that involve dividends and shares owned by other companies that have been received by...
Are investments that involve dividends and shares owned by other companies that have been received by the company issuing the shares & dividends a source of revenue or income?
Shareholders’ Equity Preferred shares cash dividends have been declared and paid. Common share cash dividends have...
Shareholders’ Equity Preferred shares cash dividends have been declared and paid. Common share cash dividends have been declared, but not paid. HEMI’s board of directors declared a 10% common stock dividend on November 1, 2019. Common shares for the stock dividends were issued to the existing common shareholders on December 30, 2019. However, the transaction has not been recorded in HEMI’s accounting records. HEMI is authorized to issue 50,000,000 common shares. HEMI issued 12,000,000 common shares on January 2, 2019...
Mustang Company has the following shares of stock outstanding: Preferred, 8%, $100 par, 10,000 shares (Dividends...
Mustang Company has the following shares of stock outstanding: Preferred, 8%, $100 par, 10,000 shares (Dividends totaling $15,000 are in arrears.) Common, $1 par, 100,000 shares On October 22, the board of directors declared cash dividends totaling $100,000, payable on December 24 to shareholders of record as of November 24. The preferred stock is NONCUMULATIVE. Which of the following will be included in the journal entry to record the declaration of the dividends? Question 1 options: Debit Paid-in capital –...
Cash Dividends Rock Corporation has the following shares outstanding: 8,000 shares of $40 par value, ten...
Cash Dividends Rock Corporation has the following shares outstanding: 8,000 shares of $40 par value, ten percent preferred stock and 50,000 shares of $2 par value common stock. The company has $428,000 of retained earnings. At year-end, the company declares its regular $4 per share cash dividend on the preferred stock and a $3.20 per share cash dividend on the common stock. Two weeks later, the company pays the dividends. a. Prepare the journal entry for the declaration of the...
The current price of Viva Titan Ltd shares is $75. Dividends are expected to grow at...
The current price of Viva Titan Ltd shares is $75. Dividends are expected to grow at 5% indefinitely and the most recent dividend was $1. What is the required rate of return on Viva Titan’s shares?
Should the dividends on preference shares be recognised directly in equity or as an expense in...
Should the dividends on preference shares be recognised directly in equity or as an expense in profit or loss?
Raven Instant Messaging (RIM) Company declared cash dividends of $0.25 per share. RIM has 3,000,000 shares...
Raven Instant Messaging (RIM) Company declared cash dividends of $0.25 per share. RIM has 3,000,000 shares of common stock authorized, 800,000 shares issued, and 500,000 shares outstanding. What amount should RIM record for the dividends?
Before a company can pay dividends to the common shareholders, the owners of cumulative preferred shares...
Before a company can pay dividends to the common shareholders, the owners of cumulative preferred shares must receive Select one: a. dividends in arrears, but not the current year's dividends b. the current year's dividend, but not dividends in arrears c. all dividends in arrears plus the current year's dividend d. neither the current year's dividends nor dividends in arrears
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT