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Which of the Following Statements Is True About Preferred Stock

Question 17

Multiple Choice

Which of the following statements is true about preferred stock?


A) Preferred shareholder dividends must normally be paid before common shareholder dividends.
B) Preferred stock is always a better investment than common stock.
C) If a Board of Directors decides not to pay any dividends in a year, the preferred shareholders can have a court declare the company to be bankrupt.
D) Preferred shareholders always have better voting rights than common shareholders.

Correct Answer:

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