Beams10e_Ch10.pptVIP

Beams, Advanced Accounting 10e, Ch. 10 ? Pearson Education, Inc. publishing as Prentice Hall Who Holds Preferred Stock? Preferred stock is held by outsiders Preferred stock is a noncontrolling interest Preferred stock is held by parent May choose between Constructive retirement Cost basis Review of Preferred Stock Characteristics Callable, redeemable Cumulative or noncumulative Participative or non-participative Limited voting rights Most is cumulative and nonparticipating Book Value of PS is: Call or redemption price (par value if neither) Plus Dividends in arrears (if cumulative) Incom