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Which of the Following Statements Regarding Preferred Stock Is False

Question 40

Multiple Choice

Which of the following statements regarding preferred stock is false?


A) Preferred stock typically pays a fixed dividend.
B) Preferred stockholders typically have no voting rights.
C) Like debt, preferred stock may be convertible into shares of common stock.
D) Preferred stockholders can force a firm into bankruptcy if too many dividend payments are missed.

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