Which of the following can be structured to assure shareholders that they will share in the payment of any dividends to common stockholders?
A)paid in kind preferred stock
B)cumulative preferred stock
C)participating preferred stock
D)convertible preferred stock

Question

Quizplus · Accepted Answer

Participating preferred stock allows shareholders to receive dividends equal to the normally specified rate plus an additional dividend based on a predetermined condition, ensuring they share in dividends paid to common stockholders.

Which of the Following Can Be Structured to Assure Shareholders