Preferred stockholders:
A)must receive dividends every year.
B)have the right to receive dividends only in the years the board of directors declares dividends.
C)have the right to receive dividends only if there are enough dividends to pay the common stockholders too.
D)must receive more dividends per share than the common stockholders.

Question

Quizplus · Accepted Answer

Preferred stockholders have higher priority than common stockholders if a corporation distributes assets to its owners through dividends or at liquidation.That is,any dividends the corporation declares must be paid to preferred stockholders before they can be paid to common stockholders.

Preferred Stockholders