Preferred shares earn their name in part because they have priority payment over:
A)short-term debt obligations.
B)long-term debt obligations.
C)common stock dividends.
D)all of the above.

Question

Quizplus · Accepted Answer

Preferred shares have priority payment over common stock dividends. They do not have priority payment over debt obligations. Therefore, A and B are incorrect.

Preferred Shares Earn Their Name in Part Because They Have