ACCOUNTING II (MUHASEBE II) - (İNGİLİZCE) Dersi Shareholders’ Equity: Retained Earnings and Dividends soru detayı:

PAYLAŞ:

SORU:

Explain the dividend on preferred shares.


CEVAP:

If a corporation has already issued both common and preferred shares, the shareholders who have preferred shares should receive dividends at first. After the preferred shareholders receive cash dividends, the common shareholders may receive cash if there is still any remaining amount from the total amount of dividends. Because preferred shares have some priorities over the common shares.