CFA Practice Question

There are 191 practice questions for this study session.

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 ______.

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...
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