Preferred Stockholders Have Priority Over Common Stockholders with Respect to Dividends

question 2

True/False

Preferred stockholders have priority over common stockholders with respect to dividends, because dividends must be paid on preferred stock before they can be paid on common stock.However, preferred and common stockholders normally have equal priority with respect to liquidating proceeds in the event of bankruptcy.

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Definitions:

Behavioural Component

Elements of behaviour that include actions and responses to stimuli or situations.

Physiological Component

The aspect of psychological processes and reactions that involves bodily functions and biological factors.

Achievement Motivation

A psychological drive or ambition for success and accomplishment in tasks, influencing one’s persistence, effort, and goal-setting behavior.

Elective Course

A class that students can choose to take as part of their curriculum, which is not required for their major or degree program.