Which of the following statements regarding preferred stock is true?
A) Holders of preferred stock have the same voting rights as common stockholders.
B) Preferred stock dividend payments are a deductible expense for corporate tax purposes.
C) Almost all public corporations are at least partly financed with preferred stock.
D) None of the above.

Question

Quizplus · Accepted Answer

Option A is incorrect because preferred stockholders generally do not have voting rights, or if they do, they have limited voting rights. Option B is incorrect because preferred stock dividends are not tax-deductible expenses. Option C is incorrect because not all public corporations issue preferred stock for financing purposes.

Which of the Following Statements Regarding Preferred Stock Is True