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Which of the Following Statements About Preferred Stock Is True

Question 79

Multiple Choice

Which of the following statements about preferred stock is true?


A) Preferred stockholders are paid dividends before the company can pay any dividends to common stockholders.
B) The dividends for preferred stock are a fixed amount.
C) Preferred stock is more costly than debt financing.
D) Preferred stockholders are paid before other debt holders in the event of company dissolution.
E) All of the above statements about preferred stock are true.

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