A Dividend Preference for Preferred Stock Means That

question 53

Multiple Choice

A dividend preference for preferred stock means that:

• A)Preferred stockholders are allocated their dividends before dividends are allocated to common shareholders.
• B)Preferred shareholders are guaranteed dividends.
• C)Dividends are paid quarterly.
• D)Preferred stockholders prefer dividends more than common stockholders.
• E)Dividends must be declared on preferred stock.

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Definitions:

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A chemical element with symbol O and atomic number 8, essential for aerobic respiration in living organisms and a component of the Earth's atmosphere.

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An organism made up of multiple cells that have a nucleus and organelles, including animals, plants, and fungi.