Which of the Following Is True of Preferred Stock

question 75

Multiple Choice

Which of the following is true of preferred stock?

• A) It has features of bonds and a common stock.
• B) It has a claim on assets prior to creditors in the event of liquidation.
• C) Its dividends can be paid only after paying dividends to the common stockholders.
• D) It usually has a maturity of thirty years.

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Definitions:

Speaking

The act of using one's voice to articulate words for communication.

Controlling Limbs

The ability of the nervous system to coordinate and execute physical movements of the arms and legs.

Creativity

The ability to produce original and valuable ideas, involving imagination and the generation of new solutions to problems.

Hearing

The sensory process by which sound is received, interpreted, and understood by the auditory system.