Which Statement Is True

Which statement is true?

A) From a legal perspective, preferred stock is a form of corporate equity.
B) All classes of stock must have equal voting rights per share.
C) Common shareholders elect the corporate directors while the preferred shareholders vote on mergers and acquisitions.
D) Preferred dividends provide tax-free income to individual investors.
E) Preferred shareholders prefer noncumulative dividends over cumulative dividends.

Correct Answer:

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