Which of the Following Statements About Preferred Stock Is True

question 4

Multiple Choice

Which of the following statements about preferred stock is true?

• A)Preferred shareholders generally get enhanced voting rights.
• B)Dividends must generally be paid to preferred shareholders before dividends may be paid to common shareholders.
• C)Preferred stocks are a hybrid between equity and debt, because like common stock the owners of preferred shares can vote and like debt they are paid interest.
• D)It would be foolish to purchase the common stock of a company that also issues preferred shares, because the preferred shares have a higher yield with a stronger guarantee.
• E)None of the above are true.

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Definitions:

Nonverbal Cues

are forms of non-spoken communication, such as gestures, facial expressions, and body language, which convey messages or emotions.

Existence of Adapters

The presence of intermediaries or devices that enable the connection or compatibility between different systems or components.

Nonverbal Cues

Are forms of communication without words, such as facial expressions, body language, and gestures, that convey messages or emotions.

Expressions

Facial gestures, vocal intonations, or phrases used to convey emotions, thoughts, or intentions.