contestada

With regard to preferred stock, a.no dividends are expected by the stockholders. b.its stockholders may have the right to participate, along with common stockholders, if an extra dividend is declared. c.there is a legal requirement for a corporation to declare a dividend on preferred stock. d.its issuance provides no flexibility to the issuing company because its terms always require mandatory dividend payments.

Respuesta :

Answer:

b.its stockholders may have the right to participate, along with common stockholders, if an extra dividend is declared.

Explanation:

A preferred stock is given more priority when compared to common shareholders.

There is no legal requirement to declare dividends. The decision to declare dividends is made by the board of directors.

Stock holders receive dividends.

Dividends paid to preferred shareholders are fixed.

I hope my answer helps you.

Otras preguntas