Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called:

A. Noncumulative preferred stock.

B. Participating preferred stock.

C. Callable preferred stock.

D. Cumulative preferred stock.

Question

Business

Nayeli

2 June, 20:18

Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called:

A. Noncumulative preferred stock.

B. Participating preferred stock.

C. Callable preferred stock.

D. Cumulative preferred stock.

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Answers (1)

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Kian Le · Answer 1

D. Cumulative preference stock.

Explanation:

A. Non cumulative Pref stock: if preference dividend is not paid in the current year, it is forfeited.

B. Participating Pref Stocks: Holders can participate in profit sharing after receipt of fixed interest.

C. Callable Pref Stock: This are stocks that the company can redeem in between. Hence the company can redeem it at a premium.

D. Cumulative Pref Stock: The dividend are accumulated and paid anytime before payment to common stock holders.

Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called:A. Noncumulative preferred stock.B. Participating preferred stock.C. Callable preferred stock.D. Cumulative preferred stock.

Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called:

A. Noncumulative preferred stock.

B. Participating preferred stock.

C. Callable preferred stock.

D. Cumulative preferred stock.