Series 7 - General Securities Representative Exam
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ABC corporation just announced that they have suspended paying dividends to preferred shareholders this quarter. Which of the following statements MUST be true?
Common shareholders will still get their dividends
A
Common shareholders will not receive any dividends until preferred shareholders receive theirs
B
Common shareholders will receive any missed dividends during the next quarter
C
Common shareholders will still get their dividends & Common shareholders will receive any missed dividends during the next quarter
D
Explanations
Preferred stockholders must be paid their dividends before any dividends are paid to common stockholders