Which One of the Following Statements Is NOT True About

question 2

Multiple Choice

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

• A) Preferred stock represents ownership in the firm.
• B) Owners of preferred stock are not guaranteed dividend payments by the firm.
• C) Preferred stock dividends are fixed financial amounts paid regularly by the firm just like bond coupon payments.
• D) Preferred stock holders have limited voting privileges relative to common-stock owners.

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Definitions:

Future Income

Expected earnings or revenue of an individual or entity in coming periods.

Full Payment

The complete settlement of an amount due, whether it be a debt, service fee, or purchase price.

Discharge

The act of fulfilling or settling an obligation or debt.

Chapter 13

A type of bankruptcy filing in the United States that allows individuals with regular income to develop a plan to repay all or part of their debts.