Which statement is TRUE?

a) The “preferred” feature of preferred stock means that it normally will provide a higher expected return than will common stock.

b) Preferred stock normally has no voting rights. However, most preferred issues stipulate that the preferred stockholders can elect a minority number of the directors if the preferred dividend is omitted.

c) Preferred stock typically has a par value, but the par value has no real meaning

d) Corporations that invest surplus funds in floating-rate preferred stock benefit from getting a relatively stable price, but they have to pay taxes on any preferred dividends received.