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Preferred Stock Differs from Common Stock in That Preferred Stock

Question 87

Multiple Choice

Preferred stock differs from common stock in that preferred stock:


A) has more voting power and,as such,greater control over the management of the company.
B) is less risky because preferred stockholders are paid dividends before common stockholders.
C) pays a tax-free dividend.
D) has no preemptive rights or residual claims.

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