Which of the following is/are true?

Question

Quizplus · Accepted Answer

All of the above statements are true. Preferred shares typically have a fixed dividend rate that must be paid before common shareholders receive any dividends. Firms may choose to postpone or omit preferred dividends if they are experiencing financial difficulties. Finally, most preferred shares have cumulative dividend rights, meaning that if the company fails to pay a dividend in one year, it must make up the missed dividends before it can pay dividends to common shareholders.

Which of the Following Is/are True