How is preferred stock similar to bonds

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Reference no: EM13297939

How is preferred stock similar to bonds?

a. investors can sue the firm if preferred dividend payments are not paid much like bondholders can sue for non-payments of interest payments

b. dividend payments to preferred shareholders much like bond interest payments to bondholders are tax deductible

c. preferred stockholders receive a dividend payment much like interest payments to bondholders that is usually fixed

d. preferred stock is not like a bond in any way

Reference no: EM13297939

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