With cumulative preferred stock,any dividend payment the firm misses must be paid in later periods before any dividend payments are made to holders of common stock.

Name: With cumulative preferred stock,any dividend payment the firm misses must be paid in later periods before any dividend payments are made to holders of common stock.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is true for cumulative preferred stock. The dividends accumulate and must be paid before any dividends are paid to common stockholders.

With Cumulative Preferred Stock,any Dividend Payment the Firm Misses Must