Convertible preferred stock conveys what additional benefit over common stock?
A) Convertible preferred stock has a fixed dividend yield exceeding the return for common stock.
B) Unpaid dividends on convertible preferred stock are never paid before common stock dividends.
C) Convertible preferred stock has a senior claimant position in bankruptcy.
D) Convertible stock can be converted into the company's debt security.
E) All of the above

Question

Quizplus · Accepted Answer

Convertible preferred stock has a senior claimant position in bankruptcy, meaning it is paid out before common stock in the event of liquidation.

Convertible Preferred Stock Conveys What Additional Benefit Over Common Stock