Which of the following statements about preferred stock is true?
A)Unlike dividends paid on common stock, dividends paid on preferred stock are a tax-deductible expense.
B)Unpaid dividends on preferred stock are a debt of the corporation.
C)If preferred dividends are non-cumulative, then preferred dividends not paid in a particular year will be carried forward to the next year.
D)There is no difference in the voting rights of preferred and common stockholders.
E)None of the above.

Question

Quizplus · Accepted Answer

Preferred stock dividends are not tax-deductible, unpaid dividends are not a debt, non-cumulative dividends are not carried forward, and preferred stockholders typically have no voting rights.

Which of the Following Statements About Preferred Stock Is True