1. As of December dividends in arrears on the cumulative preferred stock total $

2. Arrearage: An amount on a loan, cumulative preferred stock or any credit instrument that is overdue

3. Cumulative stock entitles investors to missed dividends. Cumulative preferred stock is more attractive to investors than nonCumulative.

4. 20 Tier 2 capital: the total of capital stock (perpetual cumulative preferred stock), reserve for trading losses, reserve for losses from breach of contract, unrealized gains on financial products.

5. To illustrate, let us assume that Solarwind Company has 10 shares of common stock and 10 shares of $6 cumulative preferred stock outstanding throughout the year. Net income for the year totals $