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Preferred stock may exist because: A. losses before income taxes prevent a company from enjoying the tax advantages of debt interest while there is no
Preferred stock may exist because:
A. losses before income taxes prevent a company from enjoying the tax advantages of debt interest while there is no tax advantage for preferred dividends.
B. an advantage exists for the firm; preferred shareholders cannot force the company into bankruptcy because of unpaid dividends.
C. corporations get a 70% tax exemption on preferred dividends received.
D. All of these. None of these.
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