Preferred stockholders must be paid their dividends before any dividends are paid to common stockholders

Training Mode

Unit 1 Unit 2 Unit 3 Unit 4

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

Common shareholders will not receive any dividends until preferred shareholders receive theirs

Common shareholders will receive any missed dividends during the next quarter

Common shareholders will still get their dividends & Common shareholders will receive any missed dividends during the next quarter