Reference no: EM132819430

Problem 1: How do preferred shares differ from common shares?

a. Preferred shareholders are typically paid a dividend, regardless of the firm's position, at the end of the year, whereas common shareholders only enjoy dividends during profitable years.

b. Preferred shareholders enjoy larger dividends than common shareholders.

c. Preferred shares typically have a fixed dividend, whereas the dividend from common shares is determined by a firm's board of directors every year.

d. Preferred shares have more voting rights than common shares.