A cumulative dividend feature will mean that unpaid dividends from prior periods will be paid before the current dividend entitlement.

Name: A cumulative dividend feature will mean that unpaid dividends from prior periods will be paid before the current dividend entitlement.
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

A cumulative dividend feature on preferred stock ensures that any dividends not paid in prior periods must be paid out to preferred shareholders before any dividends can be distributed to common shareholders.

A Cumulative Dividend Feature Will Mean That Unpaid Dividends from Prior