A Protective Feature on Preferred Stock That Requires Preferred Dividends

question 13

Multiple Choice

A protective feature on preferred stock that requires preferred dividends previously not paid to be disbursed before any common stock dividends can be paid is called what?

• A) cumulative dividends
• B) callable dividends
• C) putable dividends
• D) historical dividends
• E) paid dividends

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Definitions:

Resources

Assets, materials, and inputs needed by businesses to produce goods or services.

Land

An asset represented by the earth's surface not depreciated over time, considered a fixed asset on a company's balance sheet without an expiration or useful life.

Financing Activity

Activities that result in changes in the size and composition of the equity capital or borrowings of a company.

Long-term Loan

A loan with a repayment period typically extending beyond one year, used for financing significant investments or acquisitions.