Harriet recently purchased 100 shares of ABC preferred stock, paying a 4% dividend. Which of the following statements is CORRECT?

A)

If ABC preferred stock is cumulative, Harriet must receive any unpaid ABC preferred stock dividends from prior periods before ABC can pay any dividends to their common stockholders.

B)

Young, high-income investors looking for returns in the form of capital appreciation are the primary purchasers of preferred stock.

C)

Harriet will stop receiving dividends after 10 years.

D)

Harriet must receive her $40-per-share dividend before the common stockholders receive their dividends.