Following two years of no dividend payments to either cumulative preferred or common shareholders management decides to declare a dividend for all shareholders (a) Is the company required to pay all shareholders for the previous two years of missed dividends (b) Should the company report a liabilit...

Following two years of no dividend payments to either cumulative preferred or common shareholders management decides to

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Following two years of no payments to either cumulative preferred or common shareholders management decides to declare a for all shareholders.
(a) Is the company required to pay all shareholders for the previous two years of missed dividends?
(b) Should the company report a liability for the years of missed dividends or are there any other reporting requirements?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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Question Posted: Mar 30, 2017 12:32 PM

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Following two years of no dividend payments to either cumulative preferred or common shareholders management decides to

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a The company is required to pay the previous two year...View the full answer

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