Which is TRUE concerning preferred stock?

Question

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Preferred stock is viewed as less risky than a firm's common stock, as it typically has a fixed dividend payment and higher priority in the event of bankruptcy or liquidation. Option A is incorrect, as preferred stock is considered equity on the company balance sheet, not debt. Option B is also incorrect, as preferred stock holders generally do not have voting rights. Option C is incorrect, as preferred stock payments are typically fixed, not variable like common stock dividends.

Which Is TRUE Concerning Preferred Stock