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Preferred Stock May Be Good for a Company Because It

Question 9

Multiple Choice

Preferred stock may be good for a company because it:


A) expands the capital base of the firm without diluting the common stock ownership.
B) does not require interest payment in times of financial trouble,but are tax-deductible when dividends are paid.
C) is not as costly as common stock or bonds.
D) gives up no control even when dividend payments are missed.

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