If preferred stock is cumulative, then the company does NOT need to pay dividends that were passed in previous years.

Name: If preferred stock is cumulative, then the company does NOT need to pay dividends that were passed in previous years.
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Quizplus · Accepted Answer

If preferred stock is cumulative, then the company is required to pay any dividends that were passed in previous years before paying dividends to common stockholders.

If Preferred Stock Is Cumulative, Then the Company Does NOT