________ are promised a fixed periodic dividend that must be paid prior to paying any common stock dividends.
A) Preferred stockholders
B) Common stockholders
C) Bondholders
D) Creditors

Question

Quizplus · Accepted Answer

Preferred stockholders have a higher priority to receive dividends compared to common stockholders. They are promised a fixed periodic dividend that must be paid prior to paying any common stock dividends, hence the name "preferred". Bondholders and creditors also have a higher priority to receive payments than common stockholders, but they are not relevant to this specific question.

________ Are Promised a Fixed Periodic Dividend That Must Be