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Historically, There Have Been Issues Entitling the Preferred Stockholder to Participate

Question 10

Multiple Choice

Historically, there have been issues entitling the preferred stockholder to participate in earnings distribution beyond the specified amount (based on some formula) . Preferred stock with this feature is referred to as ________.


A) redeemable preferred stock.
B) convertible preferred stock.
C) cumulative preferred stock.
D) participating preferred stock.

Correct Answer:

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