Which of the Following Is Not a True Statement

Multiple Choice

Which of the following is not a true statement?

A) A corporation generally obtains equity capital from stockholders.
B) A corporation can issue both preferred stock and common stock.
C) When a corporation is experiencing financial problems, an investor should purchase common rather than preferred stock.
D) Most corporations sell common stock to satisfy a large part of their financing needs.
E) The most important priority a preferred stockholder enjoys is receiving cash dividends before common stockholders receive cash dividends.