hows your responses and what was marked correct and incorrect from your previous

Question

hows your responses and what was marked correct and incorrect from your previous attempt Award: 0 out of 1.00 point MC Qu. 164 Preferred stockholders Preferred stockholders * must receive dividends every year. O have the right to receive dividends only in the years the board of directors declares dividends. O have the right to receive dividends only if there are enough dividends to pay the common stockholders too. O must receive more dividends per share than the common stockholders. References Multiple Choice MC Qu·164 Preferred stockholders: ¢ 4

Explanation / Answer

Preferred shareholders have the right to receive dividends in priority to the common shareholders. In other words, if there is sufficient funds with the company to declare dividends both to preferred and common shareholders, then in that case, preferred shareholders will be entitled the right to receive dividends first, and remaining amount will be distributed to common shareholders. Only that, they have this right only when the board of directors declares dividends.

The second option is correct.

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