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All of the following are common stock characteristics, EXCEPT: Dividends are not a liability of the firm until declared. Stockholders have no legal recourse if
All of the following are common stock characteristics, EXCEPT:
Dividends are not a liability of the firm until declared. Stockholders have no legal recourse if dividends are not declared
No exception, all listed are common equity characteristics
Ownership interest
Common stockholders vote to elect the board of directors and on other issues
Dividends are tax deductible (each $1 in dividends reduces the taxable income
by $1)
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