Cumulative preferred stock has a right to be paid prior periods' unpaid dividends after common shareholders receive an equal percentage dividend.

Name: Cumulative preferred stock has a right to be paid prior periods' unpaid dividends after common shareholders receive an equal percentage dividend.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cumulative preferred stock has the right to receive dividends that were not paid in prior years before any dividends can be distributed to common shareholders.

Cumulative Preferred Stock Has a Right to Be Paid Prior