Dividends in arrears pertain to .
A) non-cumulative preferred stock.
B) non-participating preferred stock.
C) cumulative preferred stock.
D) convertible preferred stock.

Question

Quizplus · Accepted Answer

Dividends in arrears are specific to cumulative preferred stock. This means if a company does not pay dividends in any year, those dividends accumulate and must be paid out before any dividends can be paid to common stockholders.

Dividends in Arrears Pertain to