If Preferred Stock Is---------- , Its Owners Must Receive the Stated

question 29

Short Answer

If preferred stock is---------- , its owners must receive the stated dividends for both the current year and any prior years in which the stated dividend was not paid before the common stockholders can receive any dividend.

---

Definitions:

Midplane

An imaginary plane that divides a body into two equal halves, commonly used in anatomy and developmental biology to describe symmetry.

Bacterial Chromosome

The self-replicating genetic structure of bacteria, usually a circular DNA molecule containing all the necessary information for the life of the cell.

Circular DNA

DNA that is structured in a loop or circle, commonly found in bacteria and some eukaryotes, distinct from the linear DNA of most eukaryotic organisms.

Linear DNA

DNA molecules that exist in a straight or linear form, as opposed to circular DNA found in some bacteria and the mitochondria of eukaryotes.