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QUESTION 4 If the preferred stock of a corporation is cumulative: Dividends in arrears must be paid on preferred stock before any dividend can
QUESTION 4 If the preferred stock of a corporation is cumulative: Dividends in arrears must be paid on preferred stock before any dividend can be paid on common stock. Preferred stockholders participate in dividends paid in excess of a stated amount on the common shares. Dividends cannot be declared in an amount less than that stated on the stock certificate. Dividends on preferred stock are guaranteed.
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