True or false?
a. A company's equity includes both common and preferred stock.
b. The sum of common equity and preferred stock is known as net worth.
c. As its name implies, preferred stock is a more important source of financing than common equity.
d. A corporation pays tax on only 30% of the common or preferred dividends it receives from other corporations.
e. Because of the tax advantage, a large fraction of preferred shares is held by corporations.