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preferred stock and bonds both play a fixed return aka a percentage of par or face value each year. Bonds are considered a liability while
preferred stock and bonds both play a fixed return "aka a percentage of par or face value" each year. Bonds are considered a liability while preferred stocks are considered equity. Given their similarities why is preferred stock carried in the equity section of the balance sheet?
A- preferred stock pays dividends , which are not tax deductible while bonds pay interest which is tax deductible
B-preferred stock dividends can be deferred if necessary
C- because it has the word "stock" in its name
D- A and B
E- A and C
F- Band C
G- all of above
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