Which of the following statements comparing preferred stock to other financial instruments is NOT true?
A)Like common shares,preferred dividends are after-tax payments for the firm.
B)Like bonds,preferred shares are issued with a face value.
C)Like bonds,most preferred shares have maturities of up to 30 years.
D)Like common shares,preferred dividends are typically paid quarterly.

Question

Quizplus · Accepted Answer

Unlike bonds, most preferred shares do not have a maturity date as they are considered perpetual securities.

Which of the Following Statements Comparing Preferred Stock to Other