A Dividend Payment on Preferred Stock

Multiple Choice

A dividend payment on preferred stock:

A) can never be omitted if the company is earning a profit.
B) cannot be omitted even at the discretion of the board of directors.
C) is automatically omitted if the company realizes a loss.
D) can be omitted at the discretion of the board of directors.
E) increases when the company has a profit and decreases when the company has a loss.