If Preferred Stock Is Cumulative the

question 2

Multiple Choice

If preferred stock is cumulative the

• A) preferred dividends not declared in a given year are called dividends in arrears.
• B) preferred stockholders and the common stockholders receive equal dividends.
• C) preferred stockholders and the common stockholders receive the same total dollar amount of dividends.
• D) common stockholders will share in the preferred dividends.

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