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Preferred stock may exist because: Select one: a. preferred dividends reduce the taxable income of the firm. b. corporations get a tax exemption on preferred
Preferred stock may exist because:
Select one:
a. preferred dividends reduce the taxable income of the firm.
b. corporations get a tax exemption on preferred dividends paid.
c. if preferred dividends are non-cumulative, then preferred dividends not paid in a particular year will be carried
forward to the next year.
d. an advantage exists for preferred shareholders: they can force the company into bankruptcy because of unpaid
dividends.
e. corporations get a tax exemption on preferred dividends received.
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