If Carl Is a Preferred Stockholder at Cedia Inc

Multiple Choice

If Carl is a preferred stockholder at Cedia Inc., and Cedia goes out of business, Carl's claim on the firm's assets:

A) takes precedence over common stockholders.
B) takes precedence over the claims of any creditors.
C) can be fulfilled only after the firm has paid dividends on its common stock.
D) is limited to any capital gain that the company has not paid.