2.Which of the following is true?

Select one:

a. Preferred dividends can be paid only if common shareholders vote in favor of doing so at the AGM.

b. If dividends have been in arrears for a lengthy period, preferred shareholders may be able to vote at the AGM in favor of directors who would treat them more kindly.

c. In the event of a liquidation, preferred shareholders are paid whatever dividends are in arrearage and nothing else.

d. Firms are not obligated to pay preferred dividends but if they do not, the dividend is carried forward to be paid later and the firm must pay a nominal interest rate on the amount