Origin Energy has an outstanding issue of cumulative preference shares with an annual fixed dividend of $2.00 per share.It has not paid the preferred dividend for the last 3 years,but intends to pay a dividend on the ordinary shares in the coming year.Before Origin can pay a dividend on the ordinary shares,

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Cumulative preference shares require that all missed dividends be paid before any dividends can be paid to ordinary shareholders. Since Origin has not paid dividends for 3 years, they must pay $2.00 per share for each of those years plus the current year's dividend, totaling $8.00 per share, before paying dividends on ordinary shares.

Origin Energy Has an Outstanding Issue of Cumulative Preference Shares