If preferred dividends are limited to the stated rate of dividend, the preferred stock is:

Name: If preferred dividends are limited to the stated rate of dividend, the preferred stock is:
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Preferred stock that is limited to the stated rate of dividend is referred to as nonparticipating. This means that preferred shareholders are entitled to receive dividends at a fixed rate and do not participate in any additional earnings beyond that rate.

If Preferred Dividends Are Limited to the Stated Rate of Dividend