26-43 - When pro forma fixed charges or dividend requirements may be used.
§ 26-43. When pro forma fixed charges or dividend requirements may be used.
In testing a new issue of securities under the provisions of § 26-40, itshall be permissible, in determining the number of times that fixed chargesor preferred dividend requirements have been earned, to use pro forma fixedcharges or dividend requirements, provided the corporation or its corporatepredecessor has been in existence for a period of not less than seven years.
(Code 1919, § 5431; 1942, p. 662.)