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Preferred stock dividends must be paid on common stock and must have
Answer & Solution
Correct Answer:
Option
A
Preferred stock dividends must be paid on common stock and must have fixed amount of dividends. Preferred dividends are the dividends that are accrued paid on a company's preferred stock. Any time a company pays dividends, preferred shareholders have priority over common shareholders, which means dividends must always be paid to preferred shareholders before they are paid to common shareholders.
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