Question: a) What are the principal differences between common stock and preferred stock? b) Preferred stock may be cumulative. Explain this feature. c) How are dividends

  1. a) What are the principal differences between common stock and preferred stock?
  2. b) Preferred stock may be cumulative. Explain this feature.
  3. c) How are dividends in arrears presented in the financial statements?

Please provide theory and your own explanation or examples.

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