Question: Kim Inc. recently noted that its 4% preference shares and 4% participating preference shares, which are both cumulative, have priority as to dividends up to

Kim Inc. recently noted that its 4% preference shares and 4% participating preference shares, which are both cumulative, have priority as to dividends up to 4% of their par value. Its participating preference shares participate equally with the ordinary shares in any dividends in excess of 4%. What is meant by the term participating? Cumulative?

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