Knowledge Check 01 Which of the following statements about preferred dividends is true? A cumulative dividend preference guarantees dividends owed from prior years will be paid to preferred A noncumulative dividend preference guarantees dividends owed from prior years will be paid to preferred From the standpoint of preferred stockholders, noncumulative stock would be preferred over cumulative Preferred stockholders would have no preference for cumulative stock over noncumulative stock stockholders before dividends are paid to common stockholders. stockholders before dividends are paid to common stockholders. stock