Why might a loan agreement limit or prevent the payment of dividends by the borrower?
Answer to relevant QuestionsWhy do you think property dividends are accounted for at their market value instead of their carrying amount? Why are property dividends relatively uncommon? Corporations disclose the number of shares authorized and the number of shares outstanding. Explain what these terms mean.You are provided with the following information from the equity section of Tingwick Ltd.'s balance sheet on December 31, 2016:Preferred shares-authorized, 5,000,000 shares; outstanding 2,000,000 shares...$40,000,000 Common ...On June 30, 2017, Utusivik's equity section was as follows:Preferred shares (500,000 shares authorized, 25,000 outstanding)... $ 2,000,000 Share capital (5,000,000 shares authorized, 1,000,000 ...On December 31, 2017, Nehpton Ltd. reported $3 million of common shares and $6 million of retained earnings. On that date, the company had five million shares authorized and two million outstanding. Management is considering ...
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