Preferred stockholders have preference over common


Which of the following statements is FALSE?

a. Preferred stockholders have preference over common stockholders in terms of dividends.

b. If a preferred dividend is missed, the firm is technically in default.

c. SEC may allow firms to issue different classes of common shares that differ in voting rights.

d. Minority representation is more likely to happen with a cumulative voting system than with a straight voting system.

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Financial Management: Preferred stockholders have preference over common
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