Which of the following statements about preferred stock is, Ask an Expert

Finance

Which of the following statements about preferred stock is FALSE?

Preferred stock has a higher-priority claim on the firm’s assets than the common stock.

Failure to pay dividends on preferred stocks will result in a default.

Preferred stock has a lower-priority claim on the firm’s assets than the firm’s creditors in the event of default.

Preferred stock typically pays a fixed dividend.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92084043

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