Which of the Following Statements About Preferred Stock Is FALSE

question 8

Multiple Choice

Which of the following statements about preferred stock is FALSE?

• A) Preferred stock has a higher-priority claim on the firm's assets than the common stock.
• B) Failure to pay dividends on preferred stocks will result in a default.
• C) Preferred stock has a lower-priority claim on the firm's assets than the firm's creditors in the event of default.
• D) Preferred stock typically pays a fixed dividend.

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Definitions:

Speciation Event

The process by which new genetically distinct species evolve from a single ancestral species.

Gene Duplication

A process in which a chromosome segment is copied resulting in multiple copies of the same gene in the genome, often leading to new genetic functions.

Paralogs

Genes that have evolved within the same species due to gene duplication and then diverged in function.

Evo-devo

A branch of biology that studies the evolutionary development processes of organisms, focusing on how genetic changes during development influence evolutionary changes.