Which of the Following Statements Comparing Preferred Stock to Other

question 53

Multiple Choice

Which of the following statements comparing preferred stock to other financial instruments is NOT true?

• A)Like common shares,preferred dividends are after-tax payments for the firm.
• B)Like bonds,preferred shares are issued with a face value.
• C)Like bonds,most preferred shares have maturities of up to 30 years.
• D)Like common shares,preferred dividends are typically paid quarterly.

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