When a Preferred Stock Requires That All Past Unpaid Preferred

question 49

Multiple Choice

When a preferred stock requires that all past unpaid preferred stock dividends must be paid before any common stock dividends can be declared,this preferred stock has a ________ feature.

• A)non-payment
• B)cumulative
• C)dividend protection
• D)risk-minimization
• E)none of the above

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Definitions:

Palpitations

Unusually rapid, strong, or irregular pulsations of the heart.

Concussion

A traumatic brain injury caused by a blow to the head or body, leading to temporary loss of normal brain function.

Hematoma

A localized collection of blood outside of blood vessels, usually in liquid form within the tissue, resulting from injury or disease.

Hypovolemic Shock

A critical condition resulting from severe blood or fluid loss, leading to insufficient blood flow to organs.