Which of the Following Is a Feature of Cumulative Preferred

question 8

Multiple Choice

Which of the following is a feature of cumulative preferred stock?

• A) Dividends accumulate and must be paid each year.
• B) Dividends in arrears are paid to both preferred and common stockholders.
• C) Dividends in arrears are paid to preferred stockholders whenever a dividend is declared by the corporation.
• D) Dividends in arrears are paid to common stockholders.

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Definitions:

Inflammation

The body's biological response to harmful stimuli, characterized by redness, heat, swelling, pain, and sometimes loss of function.

Pericardium

The membranous sac that covers the heart.

Meninges

Protective membranes that cover the brain and spinal cord, comprising the dura mater, arachnoid mater, and pia mater.

Chronic Obstructive Pulmonary Disease

A progressive lung disease characterized by increasing breathlessness, often caused by smoking.