Which of the Following Statements Is NOT True About Preferred

question 31

Multiple Choice

Which of the following statements is NOT true about preferred stock?

• A) Preferred stock represents ownership in the firm.
• B) Preferred stockholders are not guaranteed dividend payments by the firm.
• C) Preferred stock dividends are paid by the issuer with after-tax dollars.
• D) Preferred stock holders have limited voting privileges relative to common-stock owners.

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Definitions:

Blind Area

An aspect of an individual's personality, abilities, or performance that is not recognized by themselves but may be observed by others.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something.

Commitment

The state or quality of being dedicated to a cause, activity, or goal, showing willingness to give time and energy to something believed in.

Honesty

The quality of being truthful, transparent, and free from deceit in one’s actions and statements.