A ____ Prevents Dividends from Being Paid on Common Stock

question 32

Multiple Choice

A ____ prevents dividends from being paid on common stock until all current and previously omitted dividends are paid on preferred stock.

• A)residual claim
• B)preferred margin
• C)cumulative provision
• D)liquidation claim

---

Definitions:

Standard Deviation

An index quantifying the spread or variability among a collection of numbers, where a smaller standard deviation suggests the numbers are closely clustered around the average.

Tchebysheff's Theorem

A statistical theorem stating that, for any real-valued random variable, the proportion of values lying within k standard deviations from the mean is at least 1-1/k^2, for k > 1.

Empirical Rule

A statistical guideline suggesting that within a normal distribution, nearly every data point can be found within three standard deviations of the central mean.

Stem-And-Leaf Plot

A graphical method for displaying quantitative data, where each number is split into a "stem" (the leading digit(s)) and a "leaf" (the last digit).