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21-2) How is preferred stock similar to bonds? a. Investors can sue the firm if preferred dividend payments are not paid (much like bondholders can
21-2) How is preferred stock similar to bonds? a. Investors can sue the firm if preferred dividend payments are not paid (much like bondholders can sue for non-payment of interest payments). b. Dividend payments to preferred shareholders (much like bond interest payments to bondholders) are tax deductible. c. Preferred stockholders receive a dividend payment (much like interest payments to bondholders) that is usually fixed. d. Preferred stock is not like bonds in any way
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