All of the Following Are Characteristics of Preferred Stock EXCEPT

question 65

Multiple Choice

All of the following are characteristics of preferred stock EXCEPT

• A) it has less restrictive covenants than debt.
• B) it is often considered quasi debt due to fixed payment obligation.
• C) it gives the holder voting rights which permit selection of the firm's directors.
• D) its holders have priority over common stockholders in the liquidation of assets.

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Definitions:

All-Black Company

A military or business organization composed entirely of African American members, historically significant due to racial segregation practices.

Spanish-American War

A conflict in 1898 between Spain and the United States, resulting in U.S. acquisition of territories like Puerto Rico, Guam, and the Philippines.

Sensational Riot

A violent public disorder that is dramatically exaggerated or highlighted in media or popular discussion.

Atlanta

The capital city of Georgia, known for its rich history in the civil rights movement and as a major cultural and economic center in the United States.