What Type of Preferred Share Is Entitled to Dividends Above

question 1

Multiple Choice

What type of preferred share is entitled to dividends above its specified dividend if the common shares receive excess dividends and must receive dividends in arrears before the common dividends can be declared?

• A)cumulative and participating
• B)cumulative and non-participating
• C)redeemable and participating
• D)redeemable and cumulative

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Definitions:

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Private Equity Fund

A fund that pools money from investors to acquire equity ownership in companies with the goal of earning a return on the investments.

Factors

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