Which of the Following Statements Is True Regarding Common and Preferred

question 24

Multiple Choice

Which of the following statements is true regarding common and preferred shares?

• A) Preferred shareholders have more voting power than common shareholders.
• B) Common shareholders are guaranteed a fixed dividend.
• C) Common shareholders have a more senior claim against assets than preferred shareholders.
• D) Preferred shareholders are entitled to their dividends before common shareholders
• E) Common shareholders earn a better return than preferred shareholders.

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