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________ Means That the Issuing Company Must Make Payments to Preferred

Question 84

Multiple Choice

________ means that the issuing company must make payments to preferred stock holders for any missed dividends in previous years, before any new dividends can be paid to common shareholders.


A) Cumulative preferred stock
B) Non-preferred stock valuation
C) Preferred stock valuation
D) Noncumulative preferred stock

Correct Answer:

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