Which of the following statements regarding preferred stock is true? Holders of

ID: 2754799 • Letter: W

Question

Which of the following statements regarding preferred stock is true?

Holders of preferred stock have the same voting rights as common stockholders

Preferred stock dividend payments are a deductible expense for corporate tax purposes

Almost all public corporations are at least partly financed with preferred stock.

None of the above.

Holders of preferred stock have the same voting rights as common stockholders

Preferred stock dividend payments are a deductible expense for corporate tax purposes

Almost all public corporations are at least partly financed with preferred stock.

None of the above.

correct option is "D" -none of above

This is so because ,preferred stockholders does not have voting power ,nor preferred dividend are tax deductible .

It is also not necessary that company is financed with preferred stock .

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