Which of the following statements is true regarding dividends on  preferred stock?

A. Preferred shareholders are guaranteed an annual dividend.
B. Preferred shareholders will receive a dividend if common shareholders are paid.
C. Preferred dividends in arrears are a current liability.
D. Preferred dividends in arrears are either a current or long-term liability, depending upon when the corporation last declared a dividend.


Answer: B

Business

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a. True b. False

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What will be an ideal response?

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Fill in the blank(s) with the appropriate word(s).

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