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XYZ Corporation has cumulative preferred stock but stopped paying preferred dividends three years ago. If the company has surplus earnings this year, and the Board
XYZ Corporation has cumulative preferred stock but stopped paying preferred dividends three years ago. If the company has surplus earnings this year, and the Board wants to pay preferred and common stock dividends beginning this year without making up for missed dividends from prior years, can it do so? If so, how much and if not, why not?
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