Which of the Following Is Not a Characteristic of Preferred

question 24

Multiple Choice

Which of the following is not a characteristic of preferred stock?

• A) Common stock dividends must be paid before preferred dividends.
• B) Preferred stock dividends may be delayed.
• C) Preferred dividends are assumed to be infinite in duration.
• D) Preferred dividends are typically given less legal priority than bond interest payments.
• E) Preferred stock does not mature like a bond.

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Definitions:

Skeptical

Having an attitude of doubt or a disposition to incredulity either in general or toward a particular object.

Caution Signals

Warning signs or indicators that suggest a need for careful consideration or attention to avoid potential problems or dangers.

Body Angle

Refers to the positioning of one's body, which can convey nonverbal messages or attitudes during interpersonal communications.

Source Of Communication

The origin or starting point from which information is sent to a receiver in the communication process.