Which One of the Following Statements Concerning Preferred Shares Is

question 6

Multiple Choice

Which one of the following statements concerning preferred shares is INCORRECT?

• A) Preferred shares have the right to receive dividends or assets before common shares
• B) Preferred shares have limited voting rights as common shares
• C) Preferred shares have first claims on assets, once all debtors are repaid
• D) Preferred shareholders have only residual claims on the firm's assets

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Definitions:

Tuition

The fee for instruction at a school, university, or college.

Room And Board

The combined cost of housing (room) and food/meals (board) typically for students living on a college campus.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen, a fundamental concept in economics.

Real Cost

The total cost of manufacturing or providing a service, including all direct and indirect costs.