Multiple Choice
The name preferred stock is in reference to the fact that:
A) it is a type of corporate debt.
B) it is treated like debt for tax purposes.
C) preferred dividends must be paid in full before any additional interest may be paid.
D) preferred dividends must be paid in full before any common stock dividends can be paid.
E) fixed income traders prefer it to bonds.
Correct Answer:
Verified
Correct Answer:
Verified
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