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Dividend payments to preferred shareholders are tax - deductible expenses for the Issuing firm. Preferted dividends are generally varlable in amount. Preferred shareholders recelve preferential

Dividend payments to preferred shareholders are tax-deductible expenses for the Issuing firm.
Preferted dividends are generally varlable in amount.
Preferred shareholders recelve preferential treatment over bondholders in a liquidation.
Preferred stock generally has a stated liquidation value of $1,000 per share.
Preferred stock can be callable.
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