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Which of the Following Is True About Preferred Stock

Question 27

Multiple Choice

Which of the following is true about Preferred Stock?


A) Preferred shareholders always have voting rights.
B) If at a time a dividend is due on preferred stock,if the company does not have the funds to pay the dividend,the right of the preferred shareholders to collect that dividend lapses.
C) Preferred dividends are not tax deductible to the corporation.
D) Like bonds,preferred stock always has a maturity date at which time the issue price must be repaid to shareholders.

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