If a Preferred Stock Issue Is Cumulative,this Means

Multiple Choice

If a preferred stock issue is cumulative,this means:

A) unpaid preferred stock dividends are paid at the end of the year.
B) unpaid preferred stock dividends are legally binding on the corporation.
C) unpaid preferred stock dividends must be paid in the future before common stock dividends can be paid.
D) unpaid preferred stock dividends are never repaid.