Common stock and preferred stock outstanding


When a corporation has both common stock and preferred stock outstanding:

A) dividends on preferred stock are paid only if the company has current earnings.

B) dividends on preferred stock must be paid before dividends on common stock can be paid.

C) preferred stockholders receive the same dividend per share as common stockholders.

D) dividends on preferred stock are paid only if dividends are to be paid on the common stock.

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Accounting Basics: Common stock and preferred stock outstanding
Reference No:- TGS094118

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