A dividend preference for preferred stock means that:
A)Preferred stockholders receive their dividends before common shareholders.
B)Preferred shareholders are guaranteed dividends.
C)Dividends are paid quarterly.
D)Preferred stockholders prefer dividends more than common stockholders.
E)Dividends must be declared on preferred stock.

Question

Quizplus · Accepted Answer

A dividend preference for preferred stock means that preferred stockholders receive their dividends before common shareholders. This gives them priority in receiving dividends over other shareholders.

A Dividend Preference for Preferred Stock Means That