alleryStart learning →A cumulative preference share means unpaid dividend will:
ACarry forward for payment
BLapse at each year end
CConvert into equity
DBe waived by holders
Answer & Solution
Correct answer: A. Carry forward for payment
Unpaid cumulative dividends carry forward and must be paid before common dividends.
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Related questions
Investors were historically given what as evidence of share ownership?Putable preference shares let the holder, in some conditions, to:On liquidation, a preference share's claim is relative to common stock:Most preference shares carry which voting position?Convertible preference shares can be exchanged by holders for:Non-cumulative preference dividends, if unpaid in a year:Preference shares usually rank for dividend payment:If profits stay the same, a buy-back tends to raise which measure?