The treatment of interest and dividends received and paid depends upon the nature of the enterprise. For this purpose, the enterprises are classified as ____________.

Related MCQs

• Consider the below mentioned statements: 1. The dividends are not cumulative for equity shareholders, that is, they cannot be accumulated and distributed in the later years. 2. Dividends are taxable. State True or False:
• Dividends are paid out of
• Dividends are the ---------- of a company distributed amongst members in proportion to their shares
• Which would be an appropriate investment for temporarily idle corporate cash that will be used to pay quarterly dividends three months from now?
• The dividend on equity shares is only paid when dividend on ---------- has already been paid
• ____________ and____________ carry a fixed rate of interest and are to be paid off irrespective of the firm’s revenues.
• The type of debt whose rate of interest changes according to the changes in the rate of interest payable on gilt edged securities or the prime lending rate of the bank is called
• The appropriate objective of an enterprise is;
• The appropriate objective of an enterprise is :
• Lei-Feng, Inc.'s $100 par value preferred stock just paid its $10 per share annual dividend. The preferred stock has a current market price of $96 a share. The firm's marginal tax rate (combined federal and state) is 40 percent, and the firm plans to maintain its current capital structure relationship into the future. The component cost of preferred stock to Lei-Feng, Inc. would be closest to .