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
It is given that company A will acquire company B with shares of common stock. Present earnings of A is rs. 20 million and of company B is rs. 5 million. Earning price per share of

Question: (a) According to Modigliani and Miller's Theory of Capital Structure (1963), companies should make maximum use of gearing. Briefly, describe factors which might pr

You are considering the purchase of a deferred annuity that will pay $10,000 a year at the end of each year for 20 years, to you or a desgnated survivor. (sure thing) Payments wil

Bond J is a 4 percent coupon bond. Bond K is a 12 percent coupon bond. Both bonds have 8 years to maturity, make semiannual payments and have a YTM of 7 percent....what are the mon

Question: (a) (i) De ne net premium and state the equation for net premium. (ii) Arshad, aged exactly 50, buys a 15-year endowment assurance policy with a sum assured of $ 5

This method simply calculates the average of a number of expert estimates. Let E denote the number of experts, and mn,e denote the forecast of expert e, e =1, ... ,E, for SKU n 2N.


The case company combines SKUs into product groups and product groups into assortment groups. The methods based on advance demand information (Methods 1-3) can therefore be on a pr

Explain about the Commission Broker All brokers sell and buy securities for earning a commission. From the investor's point of view, he is the most significant member of the

Determination of the Best Ordering Policy in Service Organisations In service organisations, the role of procurement is less developed than in manufacturing. This has been due