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The major advantage that one derives from issuing preferred stock instead of bonds is that: Question 1 3 options: Preferred stock dividends are flexible. The
The major advantage that one derives from issuing preferred stock instead of bonds is that:
Question options:
Preferred stock dividends are flexible. The penalties for not paying a dividend are not severe as that of missing interest payments on bonds.
Preferred stock is better than bonds in raising capital.
Preferred stock dividends are taxdeductible for all the investors.
Preferred stockholders can vote for the Board of Directors and be an integral part of the direction of the company.
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