When stipulated cumulative preferred stock dividends have not been paid for a given period of time,they are referred to as:

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When cumulative preferred stock dividends have not been paid for a given period of time, they are referred to as dividends in arrears. This means that the investor is owed the amount of the missed dividends and these dividends will accumulate until they are paid in full. Choice A (participating dividends) refers to a type of preferred stock that allows holders to receive additional dividends beyond the stated dividend rate if the company exceeds certain financial thresholds. Choice C (dividends payable) refers to dividends that have been declared by the company but not yet paid out to shareholders. Choice D (stock dividends) refer to additional shares of stock that a company issues to its shareholders as a form of dividend.

When Stipulated Cumulative Preferred Stock Dividends Have Not Been Paid