Type of preferred stock whose dividend payments are never paid to stock holders and are not considered in in arrears is classified as

A non-participating preferred stock
B participating preferred stock
C non-cumulative preferred stock
D cumulative preferred stock

Correct Answer: non-cumulative preferred stock

Type of preferred stock whose dividend payments are never paid to stock holders and are not considered in in arrears is classified as non-cumulative preferred stock. Noncumulative preferred stock is a type of preferred stock that allows the issuing company to skip dividends and which then cancels the company's obligation to eventually pay those dividends.
Bissoy MCQ
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Related Questions

Type of preferred stock whose payments are missed and must be paid before paying dividends of common stock is classified as
A non participating preferred stock
B participating preferred stock
C non cumulative preferred stock
D cumulative preferred stock
Sum of capital gains and dividend payments which are paid to stock holders on periodic basis is equal to
A return to common stockholders
B return on premium bonds
C return to stock holder
D return to preferred stock
The preference shares holders who have no claim for the arrears of dividend are _________ preference shares.
A Cumulative
B Non-cumulative
C Redeemable
D Irredeemable
Three workers X, Y and Z, are paid a total of Tk.5,500 for particular jobs. X paid 133.33% of the amount paid to Y and Y is paid 75% amount paid to Z.How much is paid to Z?
A 1780
B 1890
C 1975
D 2000
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A 3.49 percent
B 6.45 percent
C 8.06 percent
D 8.50 percent
You are considering investing in a firm and wish to place a value on the common stock. The dividend on the firm's stock has not changed in the last five years. In absence of any information suggesting future changes in the dividend rate, the most appropriate stock valuation model be the -----model.
A zero growth
B constant growth
C non-constant groth
D growing perpetuity
Assume the following shares outstanding : Preferred stock, 6% , Tk. 50 per value, cumulative, 1000 shares with dividends in arrears 3 years, for 20-1, 20-2 and 20-3. Common stock, Tk. 100 per value, 2000 shares. Total dividends declared in 20-4 were Tk. 50,000. The total amount of dividends to which common stockholders are entitled is :
A Tk. 62000
B Tk. 50000
C Tk. 45000
D Tk. 38000
A company declares a 40% stock dividend when there are 4.0 million common shares outstanding with a Tk.1 per value. Their current market price is Tk. 20 per share. Which of the following will be the effect of the stock dividend ?
A Retained earnings will decrease by Tk. 1.6 million and contributed capital will increase by Tk 1.6 million.
B Contributed capital will decrease by Tk 1.6 million and retained earnings will increased by Tk. 1.6 million
C Retained earnings will decrease by Tk. 32 million and contributed capital will increase by Tk. 32 million
D Contributed capital will decrease by Tk. 32 million and retained earnings will increase by Tk. 32 million
Type of preferred stock in which dividend does not increase or decrease with increase or decrease in profit of firm is classified as
A non-cumulative preferred stock
B cumulative preferred stock
C non-participating preferred stock
D participating preferred stock
Stock which has fixed payments and failure of payments which do not lead to bankruptcy is classified as
A common stock
B preferred stock
C bonds equity
D common shares

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