If a preferred stock is of the cumulative


If a preferred stock is of the cumulative type

A. dividends must be paid on an equal basis with common, so long as earnings permit.

B. dividends cannot be passed if they are earned.

C. the cumulative voting rule applies in the exercise of the voting privilege.

D. unpaid dividends of one period must be carried forward and paid in subsequent periods before anything can be paid to common stockholders.

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Financial Management: If a preferred stock is of the cumulative
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