All of the following are characteristics of preferred stock EXCEPT
A. it is often considered quasi-debt due to fixed payment obligation.
B. it has less restrictive covenants than debt.
C. it gives the holder voting rights which permit selection of the firm’s directors.
D. its holders have priority over common stockholders in the liquidation of assets.
Answer:C
All of the following are characteristics of preferred stock EXCEPT
A. it is often considered quasi-debt due to fixed payment obligation. B. it has less restrictive covenants than debt. C. it gives the holder voting rights which permit selection of the firm’s directors. D. its holders have priority over common stockholders in the liquidation of assets.