Not Paying the Dividends on a Cumulative Preferred Issue May

question 14

Multiple Choice

Not paying the dividends on a cumulative preferred issue may result in:

• A) preferred dividend arrears that can be eliminated by the common shareholders only after common dividends are paid.
• B) additional voting rights are granted to common stockholders if dividends are in arrears.
• C) full payment of dividends to common shareholders.
• D) both preferred dividend arrears that can be eliminated by the common shareholders only after common dividends are paid; and additional voting rights are granted to common stockholders if dividends are in arrears.
• E) both voting rights are granted to preferred stockholders if preferred dividends are in arrears; and no payment of dividends to common shareholders.

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Definitions:

Tegmentum

A part of the brainstem that is involved in movement and arousal, containing the reticular formation and various nuclei.

Tectum

Roof of the midbrain.

Superior Colliculi

Paired structures in the midbrain that are involved in visual and auditory reflexes and coordinate head and eye movements.

Cerebrum

The cerebrum is the largest part of the brain, responsible for higher brain functions such as thought, action, reasoning, emotion, and memory.