- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 8. Equity Valuation: Concepts and Basic Tools
- Subject 4. Preferred Stock Valuation
CFA Practice Question
If any and all dividends of preferred stock must be paid in full before common stockholders can receive a dividend, then the preferred stock must be ______.
B. tallied
C. cumulative
A. collectible
B. tallied
C. cumulative
Correct Answer: C
Preferred dividends are often owed in arrears if they have accumulated over time.
User Contributed Comments 1
| User | Comment |
|---|---|
| sarath | The previous years if not given is accumulated... |