Preferred Stock Differs from Common Stock in That

question 96

Multiple Choice

Preferred stock differs from common stock in that:

• A)preferred stock has more voting power and,as such,greater control over the management of the company.
• B)preferred stockholders are paid dividends before common stockholders.
• C)preferred stock pays tax-free dividends.
• D)preferred stock has no preemptive rights or residual claims.

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