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Statement 1: Preferred stock is the most prevalent type of stock issued. Statement 2: Preferred stockholders are considered to have a residual claim on the
Statement 1:
Preferred stock is the most prevalent type of stock issued.
Statement 2:
Preferred stockholders are considered to have a residual claim on the cash flows of the company.
1. Statement 1 is correct; statement 2 is incorrect
2. Both statements are correct
3. Statement 1 is incorrect; statement 2 is correct
4. Both statements are incorrect
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