Which of the Following Statements Concerning Preferred Stock Is Correct

question 40

Multiple Choice

Which of the following statements concerning preferred stock is correct?

• A) Preferred stock generally is more costly to the firm than common stock.
• B) Most issues of preferred stock have a cumulative feature.
• C) Preferred dividend payments are tax-deductible.
• D) Preferred stock is a riskier form of capital to the firm than bonds.

---

Definitions:

Solo Entrepreneurs

Refers to individuals who establish and run their business independently, typically focusing on a niche market or industry.

Persistent Myth

A widely held but false belief or idea that continues to exist despite evidence to the contrary.

Energetic

Describing something or someone possessing or exhibiting a high level of energy or vigor.

Measurable Accomplishment

A specific, quantifiable achievement that reflects progress towards a goal or an objective.