When a corporation fails to pay the dividend on cumulative preferred stock, the preferred shareholders will never receive these dividends.

Name: When a corporation fails to pay the dividend on cumulative preferred stock, the preferred shareholders will never receive these dividends.
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Cumulative preferred stock means that if dividends are not paid in any year, they are accumulated and must be paid out to preferred shareholders before any dividends can be distributed to common shareholders in the future.

When a Corporation Fails to Pay the Dividend on Cumulative