Which of the following is not usually a right or attribute of preferred stock?
A)Having a claim to dividends in excess of the annual dividend requirement if dividends on common stock exceed dividends on preferred stock.
B)Having a priority claim to dividends relative to the common stock's claim to dividends.
C)Having a priority claim in liquidation relative to the common stock's claim in liquidation.
D)Having a claim to dividends that is cumulative over time if the annual dividend requirement is not satisfied.

Question

Quizplus · Accepted Answer

Preferred stock typically does not have the right to claim dividends in excess of the specified dividend rate, even if common stock dividends exceed preferred stock dividends.

Which of the Following Is Not Usually a Right or Attribute