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When preferred ________, companies ________ Select answer from the options below A) Dividends are in...

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Question

Accounting

When preferred ________, companies ________

Select answer from the options below

A) Dividends are in arrears; cannot pay dividends to common stockholders.

B) Dividends are in arrears; cannot liquidate.

C) stock is decreasing in market value; are less likely to liquidate.

D) stock is increasing as a percentage of total equity; pay more in common dividends.

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