Question

Which statement is true?A) From a legal perspective, preferred stock is a form of corporate equityB) All classes of stock must have equal voting rights per shareC) Common shareholders elect the corporate directors while the preferred shareholders vote on mergers and acquisitionsD) Preferred dividends provide tax-free income to individual investorsE) Preferred shareholders prefer noncumulative dividends over cumulative dividends

Answer 1

A. From a legal perspective, preferred stock is a form of corporate equity