Dividends in arrears relate to which of the following?
A)cumulative preferred shares
B)participating preferred shares
C)cumulative common shares
D)participating common shares

Question

Quizplus · Accepted Answer

Dividends in arrears typically apply to cumulative preferred shares, meaning that any unpaid dividends accumulate and must be paid out before any dividends can be paid to common shareholders. Participating shares do not accrue dividends in arrears since they have the right to share in the common dividends, while common shares do not typically have any dividend guarantees.

Dividends in Arrears Relate to Which of the Following