Which of the Following Is Not True with Respect to Preferred

question 29

Multiple Choice

Which of the following is not true with respect to preferred stock?

• A) Preferred stock usually does not allow for significant voting rights.
• B) If the firm does not have sufficient earnings from which to pay the preferred stock dividends, the preferred shareholders may force the firm into bankruptcy.
• C) Normally, the owners of preferred stock do not participate in the profits of the firm beyond the stated fixed annual dividend.
• D) Payment of preferred dividends is not a tax-deductible expense.
• E) All of the above are true.

---

Definitions:

Generalized Anxiety Disorder

A mental health disorder characterized by excessive and persistent worry about various aspects of life, not tied to any specific threat.

Nightmares

Disturbing dreams that cause the dreamer to feel a range of unsettling emotions, such as anxiety or fear, upon waking.

Sleep Difficulty

Challenges in falling asleep or staying asleep, often affecting an individual's overall health and well-being.

Major Depressive Disorder

A mood disorder defined by ceaseless feelings of sadness or lack of interest in engaging in daily activities, profoundly affecting everyday life functionality.