Q16.2 Is it possible for a firm to pass (miss) dividends on preference shares, even if it

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Q16.2 Is it possible for a firm to pass (miss) dividends on preference shares, even if it earns enough to pay them? Explain. What usually happens when a company passes a dividend on a cumulative preference share? Are ordinary dividends affected in any way?

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Fundamentals Of Investing

ISBN: 9781442532885

3rd Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott Smart, Roger Juchau, Donald Ross, Sue Wright

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