Attempt to pay cash dividends to common stockholders, Financial Management

Assignment Help:

Are there any legal factors that could restrict a corporation in its attempt to pay cash dividends to common stockholders? Explain.

A firm may be lawfully restricted as to the dividends it can pay by existing bond indentures or loan agreements. It may as well be restricted as to the payment of common stock dividends is scheduled preferred stock dividends haven't been paid.

Related Discussions:- Attempt to pay cash dividends to common stockholders

Cost of capital, Dividends are expected to grow at a constant rate of 5 per...

Dividends are expected to grow at a constant rate of 5 percent per year in the future. Firms last dividend was $1 and stock price 10 dollars the firms beta 1,2 the rate of return o

Explain the financial desirability of burley plc, BURLEY PLC Financial...

BURLEY PLC Financial desirability In a real-terms analysis the real rate of return necessary by shareholders has to be used. This is found as follows 1 nominal rate/1 i

Explain the major types of audit plans, Explain the major types of audit pl...

Explain the major types of audit plans Three major types of audit plans Strategic -this the long term forward looking audit, it continually gets updated and identifies are

Example on compound value of the single flow, Q. Example on compound value ...

Q. Example on compound value of the single flow? Mr. X invests Rs. 1000 at 10% is compounded yearly for three years. Compute value after three years. FV = PV (1+i) n FV

Valuation and exit - hedge fund, Valuation and Exit Valuation: The Net ...

Valuation and Exit Valuation: The Net Asset Value is used as a base for ascertaining the prices applicable to investor subscriptions and redemptions. Fund administrator perform

State the second element of capital budgeting decision, State the second el...

State the second element of capital budgeting decision The second element of capital budgeting decision is the analysis of risk and uncertainty. As the benefits from investment

What do you mean by average cost and marginal cost, Q. What do you mean by ...

Q. What do you mean by Average Cost and Marginal cost? Average Cost and Marginal cost: the average cost is the combined cost as explain above, but for the difference in the for

Calculate the acid test ratio, FIXED ASSETS 200 00...

FIXED ASSETS 200 000 LONG TERM LIABILITIES CURRENT ASSETS CASH 40 000 LOAN

Explain the country’s balance of payments data, Why would it be useful to e...

Why would it be useful to examine a country’s balance of payments data? Answer: It would be helpful to observe a country’s BOP for at least two reasons. First, BOP offers detail

Differences in working capital for different industries, Differences in wor...

Differences in working capital for different industries Manufacturing Retail Service Inventories H

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages