Which of the following is a feature of a preferred stock?
A) Preferred stockholders have priority over debt holders, with regard to the distribution of earnings and assets of the firm.
B) Preferred stockholders can elect the members of the board of directors and also vote on corporate issues.
C) The firm generally pays different amounts of preferred stock dividends each year.
D) Preferred stockholders have the right to receive shares of any new common stock issues in proportion to their current ownership holdings.
E) Preferred stockholders have a higher priority claim to distributions made by the firm than common stockholders.
Correct Answer:
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