Which of the Following Is True About Preferred Stock

question 47

Multiple Choice

Which of the following is true about Preferred Stock?

• A)Preferred shareholders always have voting rights.
• B)If at a time a dividend is due on preferred stock,if the company does not have the funds to pay the dividend,the right of the preferred shareholders to collect that dividend lapses.
• C)Preferred dividends are not tax deductible to the corporation.
• D)Like bonds,preferred stock always has a maturity date at which time the issue price must be repaid to shareholders.