The following are all disadvantages of preferred stock EXCEPT
A. seniority of the preferred stockholder’s claim.
B. the cost of preferred stock financing is generally higher than that of debt financing.
C. most preferred stock sold must be fixed rate to compete with bonds.
D. preferred stock is generally difficult to sell.
Answer:C
The following are all disadvantages of preferred stock EXCEPT
A. seniority of the preferred stockholder’s claim. B. the cost of preferred stock financing is generally higher than that of debt financing. C. most preferred stock sold must be fixed rate to compete with bonds. D. preferred stock is generally difficult to sell.