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Firms may prefer to issue cumulative preferred stock rather than debt for which reason Select one: a. If there is no current taxable income, preferred

Firms may prefer to issue cumulative preferred stock rather than debt for which reason Select one: a. If there is no current taxable income, preferred stock dividends are automatically voided. b. Preferred stock has no voting rights. c. Preferred dividends provide a tax shield but debt never does. d. Corporate investors can receive a tax break on dividends but not on interest. e. Dividend payments are a tax liability.

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