Disadvantage of preferred stock


Which of the following is NOT a disadvantage of preferred stock ______

  • it is often considered quasi-debt due to fixed payment obligation,
  • it has less restrictive covenants than debt,
  • it gives the holder voting rights that permit selection of the firm's directors,
  • or its holders have priority over common stockholders in the liquidation of assets

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Disadvantage of preferred stock
Reference No:- TGS01739574

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)