Elvin inherited 1000 shares of 7 percent preferred.She has been assured by her broker that the company is in sound financial health even though it did not pay any dividends this year.Elvin should next find out whether

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Cumulative rights ensure that missed dividends on preferred shares are paid out to shareholders before any dividends are distributed to common shareholders. Since Elvin didn't receive dividends this year, knowing if the rights are cumulative is crucial for understanding if she is entitled to those missed payments in the future.

Elvin Inherited 1000 Shares of 7 Percent Preferred