Which Statement About Preferred Stock Is Incorrect

Which statement about preferred stock is incorrect?

A) Callable preferred stock gives the issuing company the right to purchase the preferred stock back from the shareholder.
B) The call price on callable preferred stock is set below the par or issue price of the stock to compensate for the call feature.
C) Convertible preferred stock gives the owners of the stock the right to exchange their preferred stock for common stock.
D) Convertible preferred stock can be expected to have a lower dividend percentage than a similar nonconvertible preferred stock.
E) Participating preferred stock can receive a larger dividend than the prespecified dividend when a company has an especially good year.