If Class a Preferred Shares Provide Only for a Cumulative

Multiple Choice

If Class A preferred shares provide only for a cumulative dividend of $3 per share, what will be the consequence on liquidation?

A) Class A Preferred will receive $3 per share more than common shares.
B) Class A Preferred will receive 103% of common shares.
C) Class A Preferred will share equally with common shares.
D) Class A Preferred will be subordinated to the rights of common shares.