Which of the Following Is a Feature of a Preferred

question 64

Multiple Choice

Which of the following is a feature of a preferred stock?

• A)Preferred stockholders have priority over debt holders, with regard to the distribution of earnings and assets of the firm.
• B)Preferred stockholders can elect the members of the board of directors and also vote on corporate issues.
• C)The firm generally pays different amounts of preferred stock dividends each year.
• D)Preferred stockholders have the right to receive shares of any new common stock issues in proportion to their current ownership holdings.
• E)Preferred stockholders have a higher priority claim to distributions made by the firm than common stockholders.

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Definitions:

Double Effect

An ethical principle stating that performing a good action may be permissible even if it leads to harmful effects, under certain conditions.

Unethical

Actions or behavior that violate moral principles or professional standards, often resulting in harm or unfairness.

Elisabeth Kübler-Ross

A psychiatrist known for her theory on the five stages of grief.

Final Stage

The ultimate phase in a process or lifecycle, often implying the conclusion or final development status.