Preferred stockholders: A. have the right to receive dividends only if there are enough dividends to pay the common stockholders too. B. must receive more dividends per share than the common stockholders. C must receive dividends every year. D. have the right to receive dividends only in the years the board of directors declares dividends.

Question

Ferguson

Business

31 July, 14:55

Preferred stockholders: A. have the right to receive dividends only if there are enough dividends to pay the common stockholders too. B. must receive more dividends per share than the common stockholders. C must receive dividends every year. D. have the right to receive dividends only in the years the board of directors declares dividends.

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Hobbs · Answer 1

D. have the right to receive dividends only in the years the board of directors declares dividends.

Explanation:

As we know that the dividend is received when the board of director declared the dividend for that the company should have enough balance for distribution of dividend

After declaring the dividend the first priority is given to the preference stockholders after distributing them the remaining amount is distributed to common stockholders

This can all happen after declaring the dividend by the board of directors