A business organization issues equity securities and debt securities in order to raise its capital. The preferred stocks are the combination of equity stocks and debt instruments. Preferred stock is basically considered as stock having higher class of ownership in the business organization. The preference stockholders have the right to exercise the claim on assets of the business organization on a priority basis. These preference stocks sometimes come with cumulative dividend rights. The cumulative dividend rights become the additional feature of the preference stocks, which states that the dividend must be paid to the preferred stockholders before any dividend payments are made to the common stockholders.
Types of Preferred Stock
Preferred stocks are categorized into different types. Some preferred stock types are cumulative preferred stock, non-cumulative preferred stock, redeemable preferred stock, irredeemable preferred stock, etc.
Cumulative Preferred Stock – Cumulative stock is that type of preferred stock that allows the company to pay the dividend in arrears. Sometimes when the company is financially unstable to pay dividends, such dividends can be paid cumulatively in the next year. Thus, dividends to cumulative preference stockholders should be paid either on the due date or later.
Non-Cumulative Preferred Stock – Non-Cumulative stock is that type of preferred stock that does not mandatorily allow the company to pay the dividend in arrears.
Redeemable Preferred Stock: The redeemable preferred stock allows the company to purchase the preferred stock back the stockholders at a predetermined price.
Irredeemable Preferred Stocks: The irredeemable preferred stocks can only be redeemed by the company when the company has decided to wind up or at the time of liquidation of the company.
Features of Cumulative Dividend Rights of Preference Stockholders
The cumulative dividend rights are given to the stockholders of the business organization. The cumulative dividends can be calculated by multiplying the dividend rate with the par value of the stocks. In this case, the par value can be defined as the face value of the stocks, and the dividend rate may be defined as the estimated rate of dividends. Some of the main features of the cumulative dividends are explained below:
Fixed dividend payment – One of the main features of the cumulative dividend is that the dividend payments are fixed. Therefore, when a cumulative dividend is given, the stockholders will be paid a fixed amount of dividend. This fixed payment of dividends depends upon the dividend rate and the face or par value of the stocks. So, this feature states that no matter whether the business organization earns a profit or not, the dividend payment has to be made to the preferred stockholders on the due date or later.
Seniority in dividend payments – The other feature of the cumulative dividend is that it gives preference to the stockholders having such dividend rights in case of dividend payments. This feature states that the preferred stockholders with cumulative dividend rights must be paid before any payments are made to the common stockholders.
Accumulation of dividend payments – The other feature of cumulative dividend rights is that if any business organization is unable to pay the cumulative dividend on time, they can pay such dividends at some later date. In such cases, the dividend gets accumulated. Such accumulation is allowed in the case of cumulative dividends. Therefore, the cumulative dividends get accumulated until the business organization completely settles the outstanding amount.
Secured investment- Since there is surety of return in the form of dividend, cumulative preference stocks are considered as secured investment from the investors point of view.
Cheaper source for corporations- Since cumulative preference stock holders are provided preference and fixed return on investment, rate of dividend is comparatively lower as it is less risky.
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!