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If Preferred Stock Is "Participating," This Means That the Preferred

Question 71

Multiple Choice

If preferred stock is "participating," this means that the preferred shareholders:


A) are entitled to share,to some extent,in dividends over and above the stated dividend on the preferred stock
B) are entitled to vote along with common shareholders
C) have an absolute right to receive their dividends
D) are part of the management of the corporation
E) are not entitled to preference in receiving dividends

Correct Answer:

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