If Preferred Shares Are Noncumulative, Then

If preferred shares are noncumulative, then:

A) Cash dividends not declared in prior years are lost permanently.
B) The preferred shareholders are entitled to current and arrears of dividends before common shareholders can receive dividends.
C) Prior years' cash dividends must be paid to the preferred shareholders before any dividends may be paid to the common shareholders.
D) The preferred shareholders are only entitled to a specific percent of the cash dividends, regardless of the amount declared.

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