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A firm has issued cumulative preferred stock with a 100 par value and a 12 percent annual dividend. Fro the past two years, the board

A firm has issued cumulative preferred stock with a 100 par value and a 12 percent annual dividend. Fro the past two years, the board of directors has decided not to pay a dividend. AT the end of the current year, the preferred stockholders must be paid____prior to paying the common stockholders.

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