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Preferred stock is similar to common stock in the following way; a. both preferred stock and common stock provide equal periodic dividends. b. both investments

Preferred stock is similar to common stock in the following way;

a.

both preferred stock and common stock provide equal periodic dividends.

b.

both investments have a final maturity value set by the issuing agreement.

c.

both contain a dividend growth factor.

d.

as equity, both are subordinate to bondholders in the event of bankruptcy.

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