Preferred Stock (Cumulative Vs Noncumulative, Participating Vs Nonparticipating, Dividends)

Accounting for Preferred Stock dividends, cumulative vs noncumulative and nonparticipating vs participating in the dividends available, allocating dividends available between preferred stock and common stock,1-Cumulative Preferred Stock: If Corp fails to pay a dividend in any year, it must make it up in later years before paying dividends to common stockholders, dividends later years not yet paid (dividend in arrears), 2-Non-cumulative P/S past dividends are lost forever, example for each, (A) Preferred Stock is noncumulative & nonparticipating(noncumulative does not pay dividends in arrears), (B) Preferred Stock is cumulative & nonparticipating (cumulative pay dividends in arrears), and (C) Preferred Stock is cumulative participating, 1-Cumulative pay dividends in arrears, 2-Participate with C/S in dividends greater than dividend rate, Participating Preferred Stock share ratably with Common Stock in any profit distribution beyond the dividend rate of P/S, detailed calculations by Allen Mursau

[@cynsierra]

Thank you for posting such a detailed video of this process!!! This is so helpful

[@mehmet92]

For participating prefs, why not do it the following way: After the 48k arrears pref dividend and the 24k current year pref dividend, you have 68k left to split (140k - 48k - 24k). But we must ensure that the preference dividend rate for the current year is at least as good as the common dividend rate. So we must solve the equation (24k + X) / 500k = (68k - X) / 400k, where X is the participation dividend to pref shares. Solving for X gives 27,111 (which implies a total current year dividend rate of 10.22% (interestingly the sum of 6% and 4.22% that you calculated)). This number is much higher than the 16,888 you have!

[@jiayanglu6449]

Thank you so much! How about noncumulative participating?

[@bbn080]

clear and neat, well done! thank you!!

[@mariamlsmail2511]

Thank you so much

[@leicher98]

Hi, I greatly enjoy your Finance and Accounting videos (for professional purposes), your explanations are very clear, I appreciate the care you put on them. I just have a comment, I’m not sure why I’m not able to see them on your channel on list of videos or playlist, only when I search about a topic I bump into them, is there a way to get access to them even as a playlist maybe by topic?

[@rodneysimpson11]

You are amazingly helpful. Thank you!

[@ahmedelgohary6963]

great explanning thank you

[@prabeshbaral1282]

Nice video ... It really helped me and shaved my time

[@glendacruz4439]

What if there's a share premium preference and ordinary?

[@markt1885]

Outstanding. Thank you very much sir.

[@yevgeniamilutina4275]

thank you so much for this video

[@tina5514]

Thanks a lot

[@mackblair7425]

Great Job. Good Video!

[@storiestobetold12]

thank you this helped a lot!

[@nicholecarias3197]

TYSM 🤗

[@davidmcleod9263]

Thank you!

[@monalei6083]

thank you so much! helpful!

[@zero1992ful]

when we have loss how we will solve it?? pls answer

[@One_Last_Time]

mosab melhem you cannot give dividends if there is a loss. YOU CANNOT GIVE WHAT DO YOU DO NOT HAVE. ;)

[@justnobody07.]

One Last Time hey sir pls reply. yes sir loss will not distribute but am I going to include the year of the loss to cummulative?example. 2010 loss 2011 loss 2012 loss 2013 income 2014 income. example preference share is 500,000 × 10% x is it 5 years or just the 2 year that has income? my exam is on friday pls answer sir. asap.

[@One_Last_Time]

SLR bro... You can only distribute losses in PARTNERSHIPS, not CORPORATIONS. You do not care to the loss. :3

[@hatemnour8815]

thank you so much!

[@lillypad2424]

Wow thank you so much!

[@mousumikar1]

luv this, thanks

[@borene78]

i dint understand anything

[@shielamaesoliven6945]

wazzup bsma 1-10

[@zchchen]

wow! thx a lot

[@augustineace4057]

Thank you so much!