If a Company Has Preferred Stock, It Must Pay the Dividends

question 25

True/False

If a company has preferred stock, it must pay the dividends on the preferred even if it shows no profit for the year.

---

Definitions:

Chimpanzee

A species of great ape native to the forests and savannahs of tropical Africa, known for its intelligence and complex social behaviors.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Nucleus

The central and most important part of an atom, containing protons and neutrons, or a membrane-bound organelle in cells containing genetic material.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of deoxyribonucleic acid (DNA).