A Cumulative Dividend Preference Means That

question 119

Multiple Choice

A cumulative dividend preference means that:

• A)preferred stockholders are paid dividends before common stockholders are paid dividends for the current year only.
• B)unpaid dividends to preferred stockholders accumulate and must be paid before common stockholders receive dividends.
• C)preferred stockholders are paid their full fixed dividend rate each period as long as the company is in operation.
• D)unpaid cash dividends to preferred stockholders must be replaced with stock dividends during the current period.

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Definitions:

Hazardous Materials

Substances that pose significant risks to health, safety, or property, including chemicals, toxic waste, and other dangerous goods.

Industrial

relates to the production of goods and services through manufacturing processes, often on a large scale, involving complex operations and machinery.

Abandoned

Describes a place, object, or project left unused or not maintained by the people responsible for it.

Shredded

Torn or cut into thin pieces typically to prepare or dispose of materials and can also refer to food processing.