In bankruptcy preferred shareholders come before bondholders

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Reference no: EM131498425

Which of the following statements is CORRECT?

In a bankruptcy, preferred shareholders come before bondholders

Compared to common stocks, preferred stock is less risky to the holders of the security

Corporations cannot buy the preferred stocks of other corporation

Dividends on preferred stocks are tax deductible by the issuing firm

A firm can stop paying dividends to preferred shareholders while it continues to pay dividends to common shareholders

Reference no: EM131498425

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