Which one of the following statements about preferred stock is true?
A)Unlike dividends paid on common stock,dividends paid on preferred stock are a tax-deductible expense.
B)Dividends on preferred stock payable during the next twelve months are considered to be a corporate liability.
C)If preferred dividends are non-cumulative,then preferred dividends not paid in a particular year will be carried forward to the next year.
D)There is no significant difference in the voting rights granted to preferred and common shareholders.
E)Preferred stock usually has a stated liquidating value of $100 per share.

Question

Quizplus · Accepted Answer

Preferred stock often has a stated liquidating value, commonly $100 per share, which is used to determine dividend payments and the payout in case of liquidation. This feature differentiates it from common stock, which does not have a fixed liquidating value.

Which One of the Following Statements About Preferred Stock Is