Preferred stock has all but which of the following characteristics?
A) no stated maturity
B) a fixed dividend payment that carries a higher precedence than common stock dividends
C) the same binding contractual obligation as debt
D) preferred lacks the ownership privilege of common stock

Question

Quizplus · Accepted Answer

Preferred stock does not have the same binding contractual obligation as debt. While preferred stock has a fixed dividend payment that carries a higher precedence than common stock dividends and lacks the ownership privilege of common stock, it does not have a stated maturity like debt.

Preferred Stock Has All but Which of the Following Characteristics