Dividends in arrears means that A. commune stockholders have been paid but not preferred stockholders, B. common stockholders must receive additional dividends not paid, CAN. a specific amount of dividends hasn't been paid, D. no pay dividends have been omitted

Question

Dividends in arrears means that A. commune stockholders have been paid but not preferred stockholders, B. common stockholders must receive additional dividends not paid, CAN. a specific amount of dividends hasn't been paid, D. no pay dividends have been omitted

my answer is C.

Answer 1

From Google:

A dividend in arrears is a dividend payment associated with cumulative preferred stock that has not been paid by the expected date. ... No payments are made to the person or entity that held the stock at the time when the dividends were in arrears.

You got it!

Answer 2

Dividends in arrears refers to the situation where a company has not been able to pay out a specific amount of dividends to preferred stockholders. This means that preferred stockholders are owed unpaid dividends, but no specific additional dividends are required beyond what has already been agreed upon. Therefore, your answer is correct.