Preferred stock dividends

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Reference no: EM131504896

Preferred stock dividends:

a. can be deferred indefinitely.

b. have priority over debt interest payments but not common stock dividends.

c. become a debt of the firm if unpaid.

d. are only paid if common stock dividends are also paid.

e. are a tax-deductible business expense.

Reference no: EM131504896

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