A Dividend Preference for Preferred Stock Means That

question 160

Multiple Choice

A dividend preference for preferred stock means that:

• A)Preferred stockholders receive their dividends before common shareholders.
• B)Preferred shareholders are guaranteed dividends.
• C)Dividends are paid quarterly.
• D)Preferred stockholders prefer dividends more than common stockholders.
• E)Dividends must be declared on preferred stock.

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