Accumulated dividend, Corporate Finance

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. 

Posted Date: 7/27/2012 8:02:01 AM | Location : United States







Related Discussions:- Accumulated dividend, Assignment Help, Ask Question on Accumulated dividend, Get Answer, Expert's Help, Accumulated dividend Discussions

Write discussion on Accumulated dividend
Your posts are moderated
Related Questions
What are the advantages and disadvantages of the alternative dividend policies of the three companies? Discuss the circumstances under which each managing director might be correct

a)    Black Corp. currently has $65 million worth of floating rate debts carried at an average rate of LIBOR + 2.6% that it would like to hedge against rising interest rates withou

Course assessment: Company directors often believe that the stock market fails "correctly" to value the firms they manage, while investors are often alarmed by the volatility i

Profit for the year R3 million R4 million Gross dividends R1.5 million R2 million Market value per ordinary share R4 R1.60 Number of ordinary shares 5

how to calculate duration of a portfolio by using the average maturity, average coupon rate and average yield of maturity?

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

You are required to provide a report of approx 500 words or less (excluding attachments and references), accompanied by relevant calculations, in MS Word, MS Excel and/or PDF forma

The bulk of products is produced in South East Asia, and hence the lead time to Western retailers is long. The typical lead time from fabric manufacturers is 3 months (Gutgeld and

Initial investment outlay of $30 million, consisting of $25 million for equipment and $5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverabl

Problem: i) Consider the following apparently contradictory statements: a) ‘ an increase in the rate of growth in a country's national income relative to that in the rest