#384 Preferred stock differs from common stock

Preferred stock differs from common stock - Business Statistics

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Preferred stock differs from common stock in that preferredstock.

1)usually has a maturity date

2)can never be called

3)dividends are fixed

4)dividends are deductable for tax purpose

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Free Chegg Answer

The answer is 3) dividends are fixed

Preferred stock differs from common stock in two major ways

1) Preferred stockholders are paid before common stockholders
2) For preferred stock, dividends are paid in regular intervals andfor this reason, preferred stock can be compared to a fixed-incomesecurity.