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lesantik [10]
3 years ago
13

The cumulative feature of preferred stock

Business
1 answer:
Dima020 [189]3 years ago
3 0

Answer:

B) requires that dividends not paid in any year must be made up in a later year before dividends are distributed to common shareholders.

Explanation:

In cumulative feature of preferred stock, the preference shareholders have priority of shareholders over common shareholders in the year subsequent to the year in which the dividend is not distributed.  All other options given in the question are incorrect.

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