Preferred Stock Is Considered to Be Non-Cumulative When

question 30

Multiple Choice

Preferred stock is considered to be non-cumulative when:

• A)preferred stockholders get their yearly dividend and a percent of what is left over,sharing with common stockholders.
• B)preferred stockholders have a right to the current year's dividend,but do not receive holdovers from past years when dividends were not paid.
• C)preferred stockholders have a right to a certain dividend every year.
• D)None of these answers are correct.

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