Dividends Flashcards
1
Q
Is there a right to dividends?
A
No. Dividends are at the BOD discretion
2
Q
When will dividends never be granted?
A
When the corporation faces insolvency
3
Q
Common Shares
A
Paid last and paid equally from the residual
4
Q
Preferred Shares
A
Receive dividends before common s/h and paid a fixed amount
5
Q
Participating Shares
A
Shares are paid as preferred shares and common shares. Preferred shares paid first, then common
6
Q
Cumulative Shares
A
Shares with the right to receive unpaid years dividends and current years before common shares are paid
