Question: Is a company required to pay preferred dividends? Multiple choice question. No; the company may defer dividends on preferred stock; however they can not pay

Is a company required to pay preferred dividends?
Multiple choice question.
No; the company may defer dividends on preferred stock; however they can not pay dividends to common shareholders until preferred dividends are paid.
Yes; a company must pay dividends to preferred shareholders every quarter or the company will be in default of its agreement.
No; the company may defer dividends on preferred stock; dividends to common shareholders are unaffected.
No; the company may defer dividends on preferred stock; however they can not pay interest to bondholders until preferred dividends are paid.

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