Common Stock and Preferred Stock Differ in That

Common stock and preferred stock differ in that:

A) the firm is legally mandated to make the dividend payments on its preferred stock; there is no legal obligation to make dividend payments on its common stock.
B) common stock pays a fixed dividend while the dividend associated with preferred stock will typically increase as the earnings of the firm increases.
C) preferred stockholders have more voting rights than the common stockholders of the firm.
D) preferred stockholders will receive their part of the proceeds if the firm is liquidated before the common shareholders receive anything.