Question: For the issuing company, preferred stock is considered less risky than bonds. This is because, if the company fails to distribute the fixed dividends to
For the issuing company, preferred stock is considered less risky than bonds. This is because, if the company fails to distribute the fixed dividends to preferred stockholders, itforced into bankruptcy before it could straighten out its problems. However, if a company continues to pass paying its preferred dividends, raising capital through debt or equity markets becomes
True or False: Preferred stockholders have the same voting rights as common stockholders.
True
False
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