Which of the Following Is Never a Component of a Preferred

question 42

Multiple Choice

Which of the following is never a component of a preferred stock's security structure?

• A) the right to participate in any dividends paid to common stock shareholders
• B) payment of dividends in the form of additional shares of preferred stock
• C) the option for the holder to convert preferred stock into common stock
• D) the option for the venture to call outstanding preferred stock
• E) none of the above; all of these may be included in the structure ofpreferred stock

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