The Main Difference(s)between a Preferred Stock in Company a That

The main difference(s) between a preferred stock in Company A that pays a $2.50 per share annual dividend and a common stock in Company A that also pays a $2.50 per share current annual dividend is (are)

A) the common stock has potential for price appreciation due to company earning s growth.
B) the common stock dividend may increase but the preferred dividend is fixed in perpetuity.
C) the common stock could lose value if the company performance were to suffer.
D) all of the above are real differences between preferred and common stock in the same company.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free