Statements about preferred stock

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Reference no: EM131329457

Which of the following statements about preferred stock is FALSE?

Preferred stock has a higher-priority claim on the firm’s assets than the common stock.

Failure to pay dividends on preferred stocks will result in a default.

Preferred stock has a lower-priority claim on the firm’s assets than the firm’s creditors in the event of default.

Preferred stock typically pays a fixed dividend.

Reference no: EM131329457

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