Paid dividends to the preferred shareholders

Assignment Help Financial Management
Reference no: EM13911013

A firm cannot pay dividend to its common stock until it has paid dividends to the preferred shareholders, and the company reserves the right to postpone the perferred stock dividend into next year in a bad performance year. This is ______________ of preferred stock.

A. Non-participating feature

B. Cumulative feature

C. Limited liabilities

D. Double taxation

Reference no: EM13911013

Questions Cloud

Concerned with capital rationing : Project A has an NPV of $20,000 and a PI of 1.2. Project B has an NPV of $10,000 and a PI of 1.3. Both projects have equal lives. Which project should be preferred if we are NOT concerned with capital rationing (that is, we are NOT concerned with bei..
Uses the internal rate of return method to evaluate projects : Flynn, Inc. is considering a four-year project that has an initial outlay or cost of $80,000. The future cash inflows from its project are $40,000, $40,000, $30,000, and $30,000 for years 1, 2, 3 and 4, respectively. Flynn uses the internal rate of r..
Why is xml an important technology : Why is XML an important technology?
Find the modified internal rate of return : Find the Modified Internal Rate of Return (MIRR) for the following series of future cash flows, given a discount rate of 11%: Year 0: -$22,000; Year 1: $5,000; Year 2: $6,000; Year 3: $7,000; Year 4: $7,500; and, Year 5: $8,000.
Paid dividends to the preferred shareholders : A firm cannot pay dividend to its common stock until it has paid dividends to the preferred shareholders, and the company reserves the right to postpone the perferred stock dividend into next year in a bad performance year. This is ______________ of ..
Briefly describe how the internet phone service operates : Briefly describe how the Internet phone service operates. Discuss the potential impact that this service could have on traditional telephone services and carriers.
What is the cost of the raw materials requisitioned in june : As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs.
Describe how a company could use a blog and podcasting : Describe how a company could use a blog and podcasting.
Briefly summarize the differences in how the internet : Briefly summarize the differences in how the Internet, a company intranet, and an extranet are accessed and used.

Reviews

Write a Review

Financial Management Questions & Answers

  Break-even point-what is the incremental profit

Schweser Satellites Inc. produces satellite earth stations that sell for $95,000 each. The firm's fixed costs, F, are $2.5 million, 50 earth stations are produced and sold each year, profits total $600,000; and the firm's assets (all equity financed)..

  Describe a hedging strategy using futures contracts

Hedging Strategies For the following scenarios, describe a hedging strategy using futures contracts that might be considered.

  Invest in a portfolio containing stock

You have $150,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 12.85 percent. Stock X has an expected return of 10.69 percent and a beta of 1.26, and Stock Y has an expecte..

  What is the stock price at the start of year

Logitech stock is currently selling for $30 per share. The next expected annual dividend is $3 at the end of this year and the dividend growth rate is 6% per year. What is the stock price at the start of year 4 (end of yr 3)?

  Budget is prepared to breakeven-using full accrual account

The City of Sinasonville operated a motor pool fund as an internal service fund. A loan of $500,000 was made from an enterprise fund, to be repaid over 10 years with no interest. Capital assets were purchased as follows: A budget is prepared to break..

  What is the value of the growth option

Martin Development Co. is deciding whether to proceed with Project X. The cost would be $10 million in Year 0. There is a 50% chance that X would be hugely successful and would generate annual after-tax cash flows of $7 million per year during Years ..

  Long term or short term credit riskier

COLLAPSE From the standpoint of the borrower; is long term or short term credit riskier? Would it ever make sense to borrow on a short term basis if short term rates were above long term rates?

  Using the internal rate of return

Tall trees inc is using the Internal Rate of Return The IRR when evaluating projects. You have to find the IRR for the companys project. The initial outlay for the project is $450,000. The project will produce the following after tax cash inflows of

  The interest rate on a five-year treasury bonds

The interest rate on a five-year Treasury bonds is 3.1 percent, the rate on six-year T-bonds is 2.9 percent, and the rate on seven-year T-bonds is 2.6 percent. Using the expectations theory, compute the expected one-year interest rates in (a) Year 6 ..

  Publicly traded firm-describe what sources of capital

Pick any publicly traded firm and describe what sources of capital that firm uses to finance its operations. Describe how much capital was used in each of the various sources of capital. What sort of business activity was financed by these sources of..

  Constant-growth dividend discount model

Jand, Inc., currently pays a dividend of $1.40, which is expected to grow indefinitely at 5%. If the current value of Jand’s shares based on the constant-growth dividend discount model is $36.16, what is the required rate of return?

  Question 1the following relations describe monthly demand

question 1the following relations describe monthly demand and supply for a computer support service catering to small

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd