Most Preferred Stocks Have a Feature That Requires All Past

question 55

Multiple Choice

Most preferred stocks have a feature that requires all past unpaid preferred dividend payments be paid before any common stock dividends can be paid.What is the name of this feature?

• A) participating
• B) cumulative
• C) provisional
• D) convertible

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Definitions:

Medical Laboratories

Facilities where various forms of diagnostic and medical testing are conducted to obtain information about the health of patients.

Entitlement

A right or benefit that is granted by law, social policy, or other formal means.

Private Goods

Goods that are excludable and rivalrous in consumption, meaning their use by one individual prevents use by another.

Normal Goods

Goods for which demand increases as the income of the buyer increases and decreases as the income of the buyer decreases, showing a positive correlation between income changes and demand.