Nonparticipating Preference Shares Imply That

Nonparticipating preference shares imply that:

A) the issuer has the right to buy back shares from the holders.
B) the dividend adjusts in response to a change in market interest rates.
C) the preference dividend remains constant regardless of any increase in the firm's earnings.
D) the firm cannot pay a dividend on its ordinary shares until it has paid the preference shareholders the dividends in arrears.