Preferred Stock with a Feature Allowing Preferred Stockholders to Share

question 175

Multiple Choice

Preferred stock with a feature allowing preferred stockholders to share with common shareholders in any dividends in excess of the percent or dollar amount stated on the preferred stock is called:

• A)Cumulative preferred stock.
• B)Callable preferred stock.
• C)Participating preferred stock.
• D)Convertible preferred stock.
• E)Preferential preferred stock.

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Definitions:

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