A dividend preference for preferred shares means that:
A) Preferred shareholders are allocated their dividends before any dividends are allocated to common shareholders.
B) Dividends are paid quarterly.
C) Preferred shareholders are guaranteed dividends.
D) Only preferred shareholders will receive dividends.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

Preferred shareholders have a priority over common shareholders when it comes to receiving dividends, meaning they are paid first.

A Dividend Preference for Preferred Shares Means That