A Protective Feature on a Preferred Stock That Requires Preferred

question 9

Multiple Choice

A protective feature on a preferred stock that requires preferred dividends that were not paid in previous years to be disbursed before any common stock dividends can be paid is called _____. 

• A)par value
• B)voting rights
• C)cumulative dividends
• D)a sinking fund
• E)a preemptive right

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Definitions:

Celiac Artery

A major artery that supplies oxygenated blood to the liver, stomach, abdominal esophagus, spleen, and the superior half of both the duodenum and the pancreas.

Stomach

A hollow organ in the gastrointestinal tract that digests food with acidic gastric juices before it moves into the intestines.

Liver

A large, vital organ in the body responsible for processes such as detoxification, metabolism, and the production of biochemicals necessary for digestion.

Thoracic Aorta

The section of the aorta that passes through the thoracic cavity, supplying oxygen-rich blood to the chest and upper abdominal area.