How are preferred shares "preferred"? Are dividends on preferred shares guaranteed? If the preferred shares have a cumulative feature, are the dividends guaranteed? Explain.
Answer to relevant QuestionsWould you rather receive a cash dividend or a stock dividend from a corporation? Explain.Explain the difference between a change in accounting policy and a change in accounting estimate. How is each accounted for in the financial statements?Explain why changes in accounting policies and corrections of errors have an effect on retained earnings.The shareholders’ equity section of Fogo Ltd.’s balance sheet is shown below:Fogo Ltd.Extracts from the December 31, 2017 balance sheetShareholders’ equityPreferred stock (authorized 100,000; outstanding ...Gogama Ltd. (Gogama) is planning on declaring a dividend for its common shareholders and is considering three alternatives. The divi dend would be declared on December 31:i. Declare a cash dividend of $5 per share.ii. ...
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