Type of preferred stock whose dividend payments are never paid to stock holders and are not considered in in arrears is classified as
A. non-participating preferred stock
B. participating preferred stock
C. non-cumulative preferred stock
D. cumulative preferred stock
Answer: Option C
Solution (By Examveda Team)
Type of preferred stock whose dividend payments are never paid to stock holders and are not considered in in arrears is classified as non-cumulative preferred stock. Noncumulative preferred stock is a type of preferred stock that allows the issuing company to skip dividends and which then cancels the company's obligation to eventually pay those dividends.This Question Belongs to Management >> International Finance And Treasury
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