Paid dividends to the preferred shareholders

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Reference no: EM13911013

A firm cannot pay dividend to its common stock until it has paid dividends to the preferred shareholders, and the company reserves the right to postpone the perferred stock dividend into next year in a bad performance year. This is ______________ of preferred stock.

A. Non-participating feature

B. Cumulative feature

C. Limited liabilities

D. Double taxation

Reference no: EM13911013

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