Which of the Following Is an Advantage of Preferred Stock

question 144

Multiple Choice

Which of the following is an advantage of preferred stock?

• A) In the event of liquidation, preferred shareholders are guaranteed to get their investment back in full.
• B) In the event of liquidation, preferred shareholders have first claim on remaining corporate assets.
• C) In the event of liquidation, preferred shareholders may sell their shares for higher amounts than common stock.
• D) In the event of liquidation, preferred shareholders may retain their proportionate share of voting rights.

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Definitions:

Racemic Alanine

A mixture of equal parts of the D- and L-enantiomers of alanine, making it optically inactive due to the internal compensation of optical activity.

Acetaldehyde

A volatile, colorless, and flammable liquid organic compound, used as an intermediate in the synthesis of various chemicals.

3-Methylthiopropanal

An organic compound characterized by a three-carbon aldehyde functional group attached to a sulfur atom-containing methyl group.

Methionine

An essential amino acid that plays a role in many cellular processes, such as initiating protein synthesis and being a source of sulfur.