A Cumulative Dividend on Preferred Stock

Multiple Choice

A cumulative dividend on preferred stock:

A) must be paid at a later date, usually with interest.
B) can be skipped even if dividend payments are made to common stockholders.
C) are paid to stockholders at the discretion of the board of directors.
D) must be paid at a later date, usually without interest.
E) are treated like interest payments on bonds.