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Which of the Following Is NOT True About Common Stockholders

Question 78

Multiple Choice

Which of the following is NOT true about common stockholders and preferred stockholders?


A) Preferred stockholders receive a fixed dividend each year.
B) Common stockholders vote to elect the members of the board of directors.
C) Preferred stockholders have a more senior claim on the firm's assets in the event of bankruptcy.
D) Preferred stockholders are considered the firm's ultimate owners.

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