Question: Betty owns cumulative preferred stock in ABC Corporation. The corporation has not paid the fixed dividend to the cumulative preferred stockholders for the last three

Betty owns cumulative preferred stock in ABC Corporation. The corporation has not paid the fixed dividend to the cumulative preferred stockholders for the last three years. This year, the corporation has made a profit and has funds available to pay some dividends. Which option is available to the corporation? Question 35Select one: a. The corporation must pay the accumulated fixed dividends for the last three years as well as the current-year fixed dividend prior to paying any dividends to the common shareholders. b. The corporation can pay the fixed dividend owed to the cumulative preferred shareholders for the current year only and pay a dividend to the common shareholders as well. c. The corporation can share the funds available for dividends equally among the cumulative preferred and common shareholders. d. The corporation cannot pay any dividends to the cumulative preferred shareholders until it pays the common shareholders

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