Which of the following groups of stockholders receive first priority to the receipt of a dividend?

Question

Quizplus · Accepted Answer

Cumulative-dividend preference stockholders have the first priority to receive a dividend, even if the company has not paid dividends in the past years. Current-dividend preference stockholders receive priority only for the current dividend period. Common stockholders receive dividends only after preferred stockholders have been paid. Therefore, the correct choice is B - Cumulative-dividend preference.

Which of the Following Groups of Stockholders Receive First Priority