Which of the Following Statements Concerning Preference Shares Is Correct

question 65

Multiple Choice

Which of the following statements concerning preference shares is correct?

• A)Preferred shares generally is more costly to the firm than ordinary shares.
• B)Most issues of preference shares have a cumulative feature.
• C)Preferred dividend payments are tax-deductible.
• D)Preferred shares are a riskier form of capital to the firm than bonds.

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