ABC Corporation Has Fallen Upon Hard Times and Dividends on Its

Multiple Choice

ABC Corporation has fallen upon hard times and dividends on its noncumulative preferred stock have not been paid for 3 years.Which of the following is true?

A) Common shareholders must now receive 3 years' worth of dividends.
B) Preferred shareholders must now receive 3 years' worth of dividends.
C) The corporation must fold if preferred shareholders are not paid.
D) Common shareholders have not received dividends for 3 years.