Which of the Following Statements About Rights and Privileges of Common

Which of the following statements about rights and privileges of common and preferred shareholders is false?

A) In most states, common shareholders have preemptive rights.
B) Common shareholders have the right to share proportionately in any dividends or distribution of earnings.
C) If a corporation goes out of business, preferred shareholders are entitled to share proportionately in the remaining assets after all other debts have been paid.
D) Preferred stockholders are usually entitled to receive a specified annual rate or amount of cash dividend each year.
E) If a corporation does not pay a dividend in a given year on a cumulative preferred stock, that dividend accumulates and must be paid in a future year before common stockholders can receive a dividend.