$3 cumulative preferred shares means that each preferred shareholder is eligible to receive a quarterly dividend of $3 per share.

Name: $3 cumulative preferred shares means that each preferred shareholder is eligible to receive a quarterly dividend of $3 per share.
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Quizplus · Accepted Answer

Cumulative preferred shares mean that unpaid dividends accumulate and must be paid out before any dividends can be paid to common shareholders. The $3 likely refers to an annual dividend, not quarterly.

$3 Cumulative Preferred Shares Means That Each Preferred Shareholder Is