Arrearage

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Arrearage is a preferred dividend that has not been paid and hence are in arrears.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Arrearages. Preferred dividends that have not been paid and hence are “in arrears.”

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Arrearages. Unpaid preferred dividends.

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