Match each description 1 through 4 with the characteristic of preferred stock that it best describes by writing the letter of that characteristic in the blank next to each description.

A. Cumulative B. Noncumulative C. Nonparticipating D. Participating 1. Holders of the stock are entitled to receive current and all past dividends before common stockholders receive any dividends.

2. Holders of the stock can receive dividends exceeding the stated rate under certain conditions.

3. Holders of the stock are not entitled to receive dividends in excess of the stated rate.

4. Holders of the stock lose any dividends that are not declared in the current year.