Which of the Following Statements About Preferred Stock Is True

question 45

Multiple Choice

Which of the following statements about preferred stock is true?

• A)Preferred stockholders are paid dividends before the company can pay any dividends to common stockholders.
• B)The dividends for preferred stock are a fixed amount.
• C)Preferred stock is more costly than debt financing.
• D)Preferred stockholders are paid before other debt holders in the event of company dissolution.
• E)All of the above statements about preferred stock are true.

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A large vein that carries deoxygenated blood from the lower and middle parts of the body back to the right atrium of the heart.