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Dividends omitted on preferred shares that must be paid before common shareholders are entitled to be paid are referred to as:
Select one:
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Question & Answer: Dividends omitted on preferred shares that must be paid before comm…..
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a. Participating
b. Callable
c. Cumulative
d. In arrears
Expert Answer
preferred shares have preferrence over the dividends paid to common stockholders.
Dividends omitted on preferred shares that must be paid before common shareholders are entitled to be paid are participating
So the option is A.participating.
