Which of the Following Statements About Preferred Stock Is True

Multiple Choice

Which of the following statements about preferred stock is true?

A) Preferred shareholders generally get enhanced voting rights.
B) Dividends must generally be paid to preferred shareholders before dividends may be paid to common shareholders.
C) Preferred stocks are a hybrid between equity and debt, because like common stock the owners of preferred shares can vote and like debt they are paid interest.
D) It would be foolish to purchase the common stock of a company that also issues preferred shares, because the preferred shares have a higher yield with a stronger guarantee.
E) None of the above are true.