Which One of the Following Statements Is Correct

question 48

Multiple Choice

Which one of the following statements is correct?

• A) Common stock dividends cannot be paid if preferred stock dividends are in arrears.
• B) Preferred stock dividends cannot be paid if common stock dividends are in arrears.
• C) Common and preferred dividends must be paid simultaneously.
• D) No dividends on the common stock can be paid without specific shareholder approval.