Amounts at which preferred stock is subject to redemption n.
Sharon owns 1,000 shares in the Tablet Universe Company and the company just announced that it is paying a liquidating dividend.
The total dividend is: = .00 x 200,000 shares = 0,000 The total dividend will be 0,000.
The company must use its retained earnings balance of 0,000 first and the remainder of the dividend, 0,000 (0,000 - 0,000), will come from the company's paid-up capital.
The amount of the dividend is usually stated as a percentage of the preferred stock’s “par value.” Furthermore, preferred stock is frequently cumulative preferred In the event of a corporate liquidation, to be “paid-off” before common shareholders.Sharon has only received regular dividends before and is not familiar with a liquidating dividend. Regular dividends are distributions of the company's profit that the company pays to its shareholders or owners.Regular dividends are paid out of a company's retained earnings or the earnings it has accumulated every year since it has been in operation.The following tables reveal general features that can be modified on a company by company basis.preemptive right is intended to allow a shareholder to avoid ownership dilution by being assured an opportunity to acquire a fair part of any corporate stock expansion.