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Which of the following statement is most correct? a) A big advantage of preferred stock is...

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Finance

Which of the following statement is most correct?
a) A big advantage of preferred stock is that preferred stockdividends are tax deductible for the issuing corporation
b) One of the advantages to the firm associated with financingusing preferred stock rather than common stock is that control ofthe firm is not diluted.
c) Preferred stock typically pays a dividend amount thatincreases annually.
d) Preferred stockholders have the legal right to force thefirm into bankruptcy, if the firm fails to pay dividends onpreferred stocks.

Answer & Explanation Solved by verified expert
3.8 Ratings (444 Votes)
given data PREFERENCE STOCK OR SHARES preference shares are one of the types of shares issued by the companies as name says the preference shares have certain preference in receiving the dividend after the debenture holders and before the ordinary share holders these share holders does not have voting rights like ordinary share holders in the company there are certain types of preference shares those are    See Answer
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