Elvin inherited 1000 shares of 7% 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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Elvin should next find out whether the preferred stock has cumulative rights, which means that if the company does not pay dividends in one year, the unpaid dividends will accumulate and must be paid before any future dividends can be paid to common stockholders. This is important because the company did not pay any dividends this year, and if the preferred stock has non-cumulative rights, Elvin may not receive any dividends at all. Options A and B are not directly related to dividends and do not affect Elvin's rights as a preferred stockholder. Option D is also not relevant to Elvin's situation as there is no mention of any other classes of stock. Option E is a tax-related question and is not relevant to Elvin's priority in receiving dividends.

Elvin Inherited 1000 Shares of 7% Preferred