What type of preferred share is entitled to dividends above its specified dividend if the common shares receive excess dividends and must receive dividends in arrears before the common dividends can be declared?
A)cumulative and participating
B)cumulative and non-participating
C)redeemable and participating
D)redeemable and cumulative

Question

Quizplus · Accepted Answer

This type of preferred share is both cumulative and participating, meaning it receives any unpaid dividends before common shares and is entitled to extra dividends if the common shares receive excess dividends.

What Type of Preferred Share Is Entitled to Dividends Above