ABC Corporation Has Fallen Upon Hard Times and Dividends on Their

question 89

Multiple Choice

ABC Corporation has fallen upon hard times and dividends on their non-cumulative, preferred stock have not been paid for three years.Which of the following is true?

• A)common shareholders must now receive three years' worth of dividends.
• B)preferred shareholders must now receive three years' worth of dividends.
• C)the corporation must fold if preferred shareholders are not paid.
• D)common shareholders have not received dividends for three years.