Encore Ltd. declared an 80,000 cash dividend. It currently has 3,000 shares of 7%, 100 par value
Question:
Encore Ltd. declared an £80,000 cash dividend. It currently has 3,000 shares of 7%, £100 par value cumulative preference shares outstanding. It is one year in arrears on its preference shares.
How much cash will Encore distribute to the ordinary shareholders?
a. £38,000.
b. £42,000.
c. £59,000.
d. None of the answer choices is correct.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
The correct answer is c 59000 Heres why Cumulative Preference Shares These shares have priority in r...View the full answer
Answered By
Shehar bano
I have collective experience of more than 7 years in education. my area of specialization includes economics, business, marketing and accounting. During my study period I remained engaged with a business school as a visiting faculty member and did a lot of business research. I am also tutoring and mentoring number of international students and professionals online for the last 7 years.
4+ Reviews
10+ Question Solved
Related Book For 
Financial Accounting With International Financial Reporting Standards
ISBN: 9781119787051
5th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Question Posted:
