Fundamental Accounting Principles Study Set 5
Quiz 13: Accounting for Corporations
A Bonus Issue or Share Dividend Decreases the Market Price
A bonus issue or share dividend decreases the market price of the company's share.
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Unpaid and undeclared preference dividends are called dividends in arrears.
A cumulative preference share has a right to be paid both current and prior periods' unpaid dividends before any dividend is paid to ordinary shareholders.
Callable preference shares give its holders the option of exchanging their preference shares into ordinary shares at a specified rate.
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