Which of the following features of preferred stock would most likely be opposed by common shareholders?

Question

Quizplus · Accepted Answer

Participating preferred stock grants the right to receive additional dividends beyond the stated dividend amount if the company surpasses certain financial thresholds. This feature could be seen as diluting the earnings available for common shareholders, which might be opposed by them. Choice A (par or stated value) is a common feature of many types of stock and is unlikely to generate significant opposition from common shareholders. Choices B and C (callable and redeemable) represent features that could be used to benefit common shareholders, by allowing the company to save money on interest payments or retire a higher dividend stock, respectively.

Which of the Following Features of Preferred Stock Would Most