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.

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Definitions:

Grams

A metric unit of mass equal to one thousandth of a kilogram, commonly used to measure small quantities of substances.

Milligrams

A unit of mass equal to one thousandth of a gram, used in measuring small quantities of mass.

Yards

A unit of measurement equal to 3 feet or 0.9144 meters, used primarily in the United States, the United Kingdom, and Canada for measuring distances.

Centimeters

A measurement in the metric system that corresponds to one hundredth of a meter in length.