Dividends in arrears on noncumulative preferred shares must be paid before dividends can be paid to the common shareholders.

Name: Dividends in arrears on noncumulative preferred shares must be paid before dividends can be paid to the common shareholders.
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Question

Quizplus · Accepted Answer

Dividends in arrears on noncumulative preferred shares do not accumulate if they are not declared. Therefore, they do not have to be paid before dividends can be paid to common shareholders.

Dividends in Arrears on Noncumulative Preferred Shares Must Be Paid