Cash dividends on preferred stock

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Reference no: EM131948575

1. Cash dividends on preferred stock:

a. are paid after common stock dividends

b. fluctuate with earnings

c. are exempt from personal income taxes

d. are generally fixed e. none of the answers is correct

2. Which is not true of preferred stock?

a. Preferred shareholders have priority over the creditors of the corporation.

b. none of the answers is correct.

c. Corporations are major investors in preferred stock issues.

d. Preferred shareholders have priority over the common stockholders in the case of bankruptcy to receive funds from the sale of the firm’s assets.

e. Preferred stock is issued by a limited number of corporations

Reference no: EM131948575

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