Which of the Following Statements Is NOT True About Preferred

question 24

Multiple Choice

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

• A) Preferred dividend payments are paid by the issuer with after-tax dollars.
• B) Preferred dividends are tax deductible just like the interest payments on bonds.
• C) Preferred stock holders have limited voting privileges relative to common-stock owners.
• D) Preferred stocks are generally viewed as perpetuities because they have no fixed maturity.

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Definitions:

Retrofitting

The process of adding new technology or features to an existing system, machine, or building to improve its functionality or performance.

R-12

Theoretically illegal but still available refrigerant. GWP rating is 10,900.

Vacuum Pump

A device that removes gas molecules from a sealed volume in order to create a partial vacuum.

Refrigerant Container

A special container designed to hold refrigerant, a substance used in air conditioning systems to absorb and release heat, under pressure.