Before a Company Can Pay Dividends to the Common Shareholders,the

Multiple Choice

Before a company can pay dividends to the common shareholders,the owners of cumulative preferred shares must receive:

A) the current year's dividend, but not dividends in arrears
B) all dividends in arrears plus the current year's dividend
C) dividends in arrears, but not the current year's dividends
D) neither the current year's dividends nor dividends in arrears