Which One of the Following Statements Is Correct Concerning Stock

Multiple Choice

Which one of the following statements is correct concerning stock dividends?

A) Common stock dividends cannot be paid if preferred stock dividends are in arrears.
B) Preferred stock dividends cannot be paid if common stock dividends are in arrears.
C) Common and preferred dividends must be paid simultaneously.
D) No stock dividends can be paid without specific shareholder approval.