Which of the following dividend types on preferred stock is a fixed rate plus a share of income?
A) Fixed
B) Floating
C) Cumulative
D) Participating
E) Adjustable rate

Question

Quizplus · Accepted Answer

Participating preferred stock offers dividends that include a fixed rate plus an additional dividend based on a specified condition, such as the company's income. This allows shareholders to participate in the company's financial success beyond the fixed dividend rate.

Which of the Following Dividend Types on Preferred Stock Is