Which of the Following Statements Is NOT True About Preferred

question 18

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 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.