Preferred stock may be desirable to issue

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Reference no: EM13908805

Preferred stock may be desirable to issue for which of the following reason(s)?

If there is no taxable income, preferred stock does not impose a tax penalty.

The failure to pay preferred dividends, cumulative or noncumulative, will not cause bankruptcy.

Preferred dividends are not tax deductible and therefore will not provide a tax shield but will reduce net income.

Both the failure to pay preferred dividends, cumulative or noncumulative, will not cause bankruptcy; and preferred dividends are not tax deductible and therefore will not provide a tax shield but will reduce net income.

Both if there is no taxable income, preferred stock does not impose a tax penalty; and the failure to pay preferred dividends, cumulative or noncumulative, will not cause bankruptcy.

Reference no: EM13908805

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