If a Corporation Issues Cumulative, Participating Preferred Stock, Which of the Following

Multiple Choice

If a corporation issues cumulative, participating preferred stock, which of the following is true regarding the rights of the preferred stockholders?

A) They must forego dividends for any periods when no dividends are declared.
B) They will share in the dividends that exceed a specified amount.
C) They will received a fixed dividend regardless of the amount of dividends declared.
D) They will have an option to convert their shares to common stock at a specified date.