Preferred stock can be callable. Preferred stock generally has a stated liquidation value of $1,000 per share. Dividend payments to preferred shareholders are tax-deductible expenses for the issuing firm. Preferred dividends are generally variable in amount. Preferred shareholders receive preferential treatment over bondholders in a liquidation.

Question

Maren Morgan

Business

28 April, 20:33

Preferred stock can be callable. Preferred stock generally has a stated liquidation value of $1,000 per share. Dividend payments to preferred shareholders are tax-deductible expenses for the issuing firm. Preferred dividends are generally variable in amount. Preferred shareholders receive preferential treatment over bondholders in a liquidation.

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Lauren Bridges · Answer 1

Preferred stock can be callable

Explanation:

The preferred stock can be purchase by the firm thus, callable.

Preferred stock generally has a stated liquidation value of $1,000 per share

FALSE: There is no fixed value for the preferred stock

Dividend payments to preferred shareholders are tax-deductible expenses for the issuing firm

FALSE: the dividends aren't deductible

Preferred dividends are generally variable in amount

FALSE: preferred stock has a fixed percentage return that can be accumulative.

Preferred shareholders receive preferential treatment over bondholders in a liquidation.

FALSE: they don't