Preferred stock has all,except 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. Debt holders have priority over both preferred and common stockholders in receiving payments.

Preferred Stock Has All,except Which of the Following Characteristics