Ir proferred shares are noncumulative, then The preformad shareholders are entitled to current and arrears of dividends before common shareholders can received O 2 Cash dividends not declared in prior years are lost permanently 3. The preferred shareholders are only entitled to a specific percent of the cash dividends, regardless of the amount declared 4. Prior years cash dividends must be paid to the preferred shareholders before any dividends may be paid to the common shareholder MacBook Pro