Preferred Stockholders Generally Are Given the Right to Vote for Directors

question 59

Multiple Choice

Preferred stockholders generally are given the right to vote for directors if

• A) the preferred stock is participating preferred stock.
• B) the directors are elected under the cumulative method.
• C) the common stockholders do not vote in new directors with a clear majority.
• D) the company cannot pay its interest payments.
• E) the company has not paid the preferred dividend for a specified period.