The preference to dividends that preferred stockholders have is
A)the right to receive the appropriate dividend before common stockholders are paid any dividends when dividends are declared
B)the right to accumulate dividends that have not been declared
C)the right to share dividends equally with common stockholders when dividends are declared
D)the right to be paid a minimum dividend each year

Question

Quizplus · Accepted Answer

Preferred stockholders have the right to receive the appropriate dividend before common stockholders are paid any dividends when dividends are declared. This is the main preference that distinguishes preferred stock from common stock.

The Preference to Dividends That Preferred Stockholders Have Is