Dividends are tax-free income for individual investors

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Reference no: EM131012053

Which one of the following statements is correct?

From a legal perspective, preferred stock is a form of corporate equity.

All classes of stock must have equal voting rights per share.

Common shareholders elect the corporate directors while the preferred shareholders vote on mergers and acquisitions.

Dividends are tax-free income for individual investors.

Shareholders prefer noncumulative dividends over cumulative dividends.

Reference no: EM131012053

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