Which Statement Is Correct Regarding Dividend Entitlement

question 39

Multiple Choice

Which statement is correct regarding dividend entitlement?

• A)Cumulative preferred shares do not have any rights to missed dividend payments.
• B)Non-cumulative preferred shares must be paid all missed dividend payments when dividends are declared.
• C)A corporation need only pay dividends when it declares them to be payable.
• D)A company can avoid paying dividends in arrears on cumulative preferred shares if it is to pay dividends on common shares.

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Definitions:

Symmetric

Symmetric describes an attribute where a shape or distribution can be divided into mirrored halves, or in statistics, where the left and right sides of a distribution are approximately equal in shape.

Skewed Negatively

Skewed negatively, also known as left-skewed, refers to a distribution in statistics where the tail is longer on the left side of the distribution's peak, indicating that a majority of the data points are located to the right of the mean.

Distribution

In statistics, it refers to the way in which data points are spread or dispersed across different values.

Values

Numerical or categorical data points that represent measurement or identification in a given context.