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Which of the following statements concerning preferred stock is true?

A. Preferred stockholders have a prior claim on the income and assets of the firm, as compared to the claims of lenders.

B. Preferred stock dividends per share are normally increased as the earnings of the firm increase.

C. Preferred dividends per share are usually not cut or suspended unless the firm is faced with serious financial problems.

D. Preferred stockholders are the ultimate owners of the firm.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M946858

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