Which of the Following Is Not a Characteristic of Preferred

question 24

Multiple Choice

Which of the following is not a characteristic of preferred stock?

• A) Common stock dividends must be paid before preferred dividends.
• B) Preferred stock dividends may be delayed.
• C) Preferred dividends are assumed to be infinite in duration.
• D) Preferred dividends are typically given less legal priority than bond interest payments.
• E) Preferred stock does not mature like a bond.

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