Preferred Stock, Particularly Cumulative Preferred Stock, Has Some Important Similarities

Multiple Choice

Preferred stock, particularly cumulative preferred stock, has some important similarities with debt including: ________.

A) the issuer promises flexible cash payments to preferred stockholders.
B) preferred stockholders have priority over debtholders with respect to cash payments.
C) the issuer promises fixed cash payments to preferred stockholders.
D) preferred stockholders have priority over common stockholders in everything except the distribution of assets in the case of bankruptcy.