Johns owns 400 shares of Abco Corp. Cumulative preferred stock. In the absence of any specific contrary provisions in Abco's Articles of Incorporation, which of the following statements is correct?
a. Johns is entitled to convert the 400 shares of preferred stock to a like number of shares of common stock.
b. If Abco declares a cash dividend on its preferred stock, Johns becomes an unsecured creditor of Abco.
c. If Abco declares a dividend on its common stock, Johns will be entitled to participate with the common stock shareholders in any dividend distribution made after preferred dividends are paid.
d. Johns will be entitled to vote if dividend payments are in arrears.
Answer: b