Please enable JavaScript.

Coggle requires JavaScript to display documents.

Equity (The corporate form of organization (Use of the share system (Large…

- - - - If the corporation fails to pay a dividend in any year, it must make up in a later year before paying any dividends to ordinary shareholders.
    - - Share rentability with the ordinary shareholders in any profit distributions beyond the prescribed rate.
    - - Allow shareholds to exchange preference shares for ordinary shares at a predetermined ratio.
    - - Permit the corporation at its option or redeem the outstanding preference shares at speciied future dates and at stipulated prices.
    - - Have mandatory redemtpion period or a redemption feature that ussuer cannot cantrol.
- - - - Board directos votes on the declaration.
    - - Dividends payable in assets of the corporation other than cash.
    - - Not based on retained earnings, to the shareholders so that they will not misunderstand its source.
    - - par value of the shares issued as a dividend from retained earnings to share capital.
- - - - This ratio shows how many dollares of net income the company earned for each dollar invested by the owners.
  - - - If preference shares are outstanding, this ratio equals cash dividends paid to ordinary shareholders, divided by net income available to ordinary shareholders.