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A firm's working capital position is important from an internal and external standpoint. Which of the following is not true?
Cumulative Preferred Stock
Preferred stock where dividends accumulate if not paid as scheduled, needing to be fulfilled before common stock dividends.
Common Stock
A type of security that represents ownership in a corporation, giving shareholders voting rights and a claim on profits in the form of dividends.
Dividend
A disbursement from a corporation to its stockholders, often derived from earnings.
Preferred Stock
A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividend priority.
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