Dividends in arrears which must be paid to the preferred stockholders before payment of dividends to common stockholders are

Question

Quizplus · Accepted Answer

Dividends in arrears that must be paid to preferred stockholders before payment to common stockholders are cumulative. This means that if the company does not pay the preferred stockholders their dividends in full, the unpaid dividend amounts accumulate and must be paid before the common stockholders receive any dividends.

Dividends in Arrears Which Must Be Paid to the Preferred