Purple Pigeon Bird Seed Company currently pays preferred stockholders a dividend of $1.50 per share and common stockholders a dividend of $1.00 per share.

If the firm wants to raise the common stock dividend to $2.00 per share, it will also have to raise the preferred stock dividend to $2.00 per share.

Which type of provision does Purple Pigeon have in its preferred stock agreements?

Explanation:

Purple Pigeon simply have a participating provision with preferred stockholders.

Meaning of Participating Provision: In a given financial year, a participating preferred stock may not only receive dividend that is legally  agreed in the share certificate, but also may receive auxiliary dividends based on fore determined conditions. Simply put that, participation provision in the common stock dividend is an extra incentive to stockholders for taking the risk and funding a company.

This provision where the stockholder not only receive the legally agreed dividend, but also participates in the 'upside' the common stock might experience.

i mean they dont have to

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!