Like many start-up companies, DomainCo struggled with cash flows as it developed new business opportunities. A student

Question:

Like many start-up companies, DomainCo struggled with cash flows as it developed new business opportunities. A student found a financial statement for DomainCo that stated that the increase in dividends in arrears on preferred shares this year was $264,000.
The student who read the note suggested that the DomainCo preferred share would be a good investment because of the large amount of income that would be earned when the company started paying dividends again: "As the owner of the shares, I'll get dividends for the period I hold the shares plus some previous periods when I didn't even own the shares." Do you agree? Explain.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...