Which of the following is true regarding a firm's securities
A)Common dividends are paid before preferred dividends.
B)Preferred stockholders have voting rights.
C)Preferred dividends are usually cumulative.
D)Preferred dividends are contractual obligations.
E)Common dividends usually can be paid if preferred dividends have been skipped.

Question

Quizplus · Accepted Answer

Preferred dividends must be paid first and any skipped preferred dividends must be paid before common dividends may be paid.

Which of the Following Is True Regarding a Firm's Securities