When a Corporation Has Both Common Stock and Preferred Stock

question 33

Multiple Choice

When a corporation has both common stock and preferred stock outstanding:

• A)dividends on preferred stock are paid only if the company has current earnings.
• B)dividends on preferred stock must be paid before dividends on common stock can be paid.
• C)preferred stockholders receive the same dividend per share as common stockholders.
• D)dividends on preferred stock are paid only if dividends are to be paid on the common stock.

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Definitions:

Intravenous Solution

A liquid substance administered directly into the vein for therapeutic purposes, including hydration, nutrition, or medication delivery.

Infiltrated

In medical context, it refers to the diffusion or accumulation of foreign substances or cells into tissues, often leading to an inflammatory response.

Chloride

A chemical element or compound (often sodium chloride or potassium chloride) that plays essential roles in fluid balance and acid-base balance in the body.

Anions

Negatively charged ions, which move towards the anode (positive electrode) during electrolysis.