For preferred noncumulative stock, all previously unpaid preferred dividends must be paid before any common stock dividend is paid.

Name: For preferred noncumulative stock, all previously unpaid preferred dividends must be paid before any common stock dividend is paid.
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Question

Quizplus · Accepted Answer

For noncumulative preferred stock, if dividends are not declared in a given year, they do not accumulate, and shareholders are not entitled to receive missed payments in the future before common stock dividends can be paid.

For Preferred Noncumulative Stock, All Previously Unpaid Preferred Dividends Must