Which of the following is a characteristic of preferred stock? A. Give voting rights to its owner. B. It is like annuity. C. Investors cannot force the payment of the dividend. D. Dividends are tax-deductible for the firm as opposed to interest payment.

Which of the following is a characteristic of preferred stock? A. Give voting rights to its owner. B. It is like annuity. C. Investors cannot force the payment of the dividend. D. Dividends are tax-deductible for the firm as opposed to interest payment.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 1MC: Which of the following is not a characteristic that sets preferred stock apart from common stock? A....

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Question

2. Which of the following is a characteristic of preferred stock?
A. Give voting rights to its owner.
B. It is like annuity.
C. Investors cannot force the payment of the dividend.
D. Dividends are tax-deductible for the firm as opposed to interest payment.

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