Preferred Stock May Be Good for a Company Because It

Multiple Choice

Preferred stock may be good for a company because it

A) expands the capital base of the firm without diluting the common stock ownership.
B) does not require interest payment in times of financial trouble, but are tax-deductible when dividends are paid.
C) is not as costly as common stock or bonds.
D) has no future negative ramifications when dividend payments are missed.