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A company with cumulative non-participating voting preferred stock would do which of the following?
Pay the current dividend on the preferred, but not the past dividends on the preferred, before paying a dividend on the common
Force conversion of the preferred that is trading at a discount to par and thereby eliminate the necessity of paying past due dividends
Pay the preferred dividends before paying the coupons due on its outstanding bonds
Pay past and current preferred dividends before paying dividends on common
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Current and unpaid past dividends on cumulative preferred stock must be paid before common stockholders can receive a dividend.
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09
00
00
A company with cumulative non-participating voting preferred stock would do which of the following?
1 of 2 people (50%) answered this question correctly.
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