Preferred stock and long-term bonds are similar because
A)they both have voting power
B)interest and dividend payments are fixed
C)interest and dividend payments are legal obligations
D)interest and dividend payments are tax-deductible expenses

Question

Quizplus · Accepted Answer

Preferred stock and long-term bonds both typically offer fixed payments; preferred stocks pay fixed dividends, while bonds pay fixed interest.

Preferred Stock and Long-Term Bonds Are Similar Because