Adam holds ABC preferred shares and 100 ABC common shares that also pay a dividend. In year 1, the preferred paid a $2.50 dividend and the common shares paid a $0.50 dividend. In year 2, the company did not pay a preferred dividend nor a common dividend. In year 3, the company paid a preferred dividend of $2.50 per share, but was not permitted to pay the common dividend. What type of preferred share does Adam hold?

Answer rating: 100% (QA)

Based on the information provided Adam most likely holds cumulative preferred shares with ABC Heres ... View the full answer