Question

When a dividend is not declared on preferred stock, and the common share­holders cannot receive a dividend until all past and current dividends are paid to the preferred shareholders, the preferred stock is:

Answer 1

cumulative.

Step-by-step explanation:

Cumulative preferred stock is defined as a type of stock that states that if any dividend payments have been missed the first payment of the owed dividends must be done to cumulative preferred shareholders in first instance