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Doctors Medicines MCQs Q&A

  1. non-cumulative preferred stock
  2. cumulative preferred stock
  3. non-participating preferred stock
  4. participating preferred stock
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1 Answers

Answer: Option 3

Type of preferred stock in which dividend does not increase or decrease with increase or decrease in profit of firm is classified as non-participating preferred stock. Non-participating preferred stock is preferred stock that specifically limits the amount of dividends paid to its holders.

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