Dividends in arrears
When preferred stock, is cumulative, preferred dividends not declared in a given period are called dividend in arrears.
To illustrate, assume that scientific leasing has 5000 shares of 7% is $35,000 (5,000 but dividends are two years in arrears. In this case, preferred stockholders are entitled to receive the following dividends in the current year.
Dividends in areas (35,000 $70,000
Current-year dividends 35,000
Total preferred dividends $105,000
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