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Dividends in arrears on cumulative preferred stock must be paid before common stockholders can receive a cash dividend. should be recorded as a current liability
Dividends in arrears on cumulative preferred stock
must be paid before common stockholders can receive a cash dividend. | ||
should be recorded as a current liability until they are paid. | ||
never have to be paid, even if common dividends are paid. | ||
enable the preferred stockholders to share equally in corporate earnings with the common stockholders. |
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