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When a dividend is not declared on preferred stock, and the common share­holders cannot receive a...

When a dividend is not declared on preferred stock, and the common share­holders cannot receive a dividend until all past and current dividends are paid to the preferred shareholders, the preferred stock is

a. noncumulative

b. participating

c. redeemable

d. cumulative.

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Answer #1

the answer is option D)cumulative preference shares.

cumulative preference shares are those shares get right to get dividends when it is available if any year dividend is pending. they will get cumulative of these arrears dividends, the cumulative preference shareholder entitled to these dividends before common equity shareholders receive dividends once more.

Noncumulative preference shares are those preference shares that don't cumulate there pending dividends.

Participating preference shares are those get participation on the equity shareholders dividend too

redeemable preference shares are those preference shares the company issue them to shareholders and later redeems them

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