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:
Verified
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