00:01
So here we're talking about different classes of stocks.
00:03
And the basic idea here is that cumulative prefers, right, which is what we're dealing with, must receive all owed dividends before common is paid anything.
00:27
You can't legally send money to your common shareholders until you've paid off the entire history of cumulative dividends and that's a cumulative preferred dividends and that cumulative is very important if they were non -cumulative preferreds which is exceptionally rare then you wouldn't have to pay them for history but here there are cumulative preferred and so those dividends accumulate and stack up and are owing right so what do we have to do first before we intend the common shareholders are entitled to receive a dividend right so we first need to pay preferreds um the the two missing payments.
01:14
And that's going to be 50 cents times two is equal to a dollar.
01:19
Now, is the question is, and this is a little bit, a little bit vague, because we're not sure about the timing, right? so option a is that you want to pay a quarterly dividend, in which point i think you would have to pay, well, no, if you were paying another quarterly dividend, you would need to pay the preferreds another 50 cents, right? because we're at the end of a quarter, and then you can pay the comments.
01:52
But if you want to be pay a special dividend before the quarter ends, right? special dividend.
02:04
You can just pay before quarter ends...