6:28 E. HW 5 - Chapter 13.pdf - Read-only 2014. Characteristics of Common and Preferred Stock E3B. Indicate whether each of the following characteristics is more closely associated with common stock (C) or preferred stock (P): 1. Often receives dividends at a set rate. 2. Is considered the residual equity of a company. 3. Can be callable. 4. Can be convertible. 5. More likely to have dividends that vary in amount from year to year. 6. Can be entitled to receive dividends not paid in past years. 7. Likely to have full voting rights. 8. Receives assets first in liquidation. 9. Generally receives dividends before other classes of stock. Cash Dividends with Dividends in Arrears F4B. Mendez Corporation has 10 000 shares of its $100 par value 7 percent cumulative O