Which of the following statements is NOT true about preferred stock?
A) Preferred stock represents ownership in the firm.
B) Preferred stockholders are not eligible for guaranteed dividend payments by the firm.
C) Preferred stock dividends are paid by the issuer with after-tax dollars.
D) Preferred stock holders have limited voting privileges relative to common-stock owners.

Question

Quizplus · Accepted Answer

Preferred stockholders are typically eligible for fixed dividend payments, which are often guaranteed unless the company is in financial distress.

Which of the Following Statements Is NOT True About Preferred