A cumulative provision on preferred stock (PS)

Group of answer choices

provides that the current year dividend on PS must be paid before any dividends can be paid to common stock holders, but makes no such promise with regard to arrearages from prior years.

gives the issuer of PS the right to issue (sell) additional PS at a known price within a specified time period.

provides that the current year dividend on PS, as well as any arrearages from prior years, must be paid before any interest can be paid on the companys debt.

provides that the current year dividend on PS, as well as any arrearages from prior years, must be paid before any dividends can be paid to common stock holders.