Which one of the following statements is NOT true about preferred stock?
a. Preferred stock represents ownership in the firm.
b. Owners of preferred stock are not guaranteed dividend payments by the firm.
c. Preferred stock dividends are fixed financial amounts paid regularly by the firm just like bond coupon payments.
d. Preferred stock holders have limited voting privileges relative to common-stock owners.
Answer: B
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FIN202 Chapter 9
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- Owners of preferred stock
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