Which of the following is FALSE regarding preferred stock? Most preferred stock is cumulative, meaning that if the company omits its preferred dividends, they must be paid before the company is permitted to pay dividends to the common stockholders. Preferred dividends are a liability of the firm, meaning if they are not paid, the firm could be forced into bankruptcy. Preferred stockholders do not have the right to vote for members of the board of directors. Some companies take pride in having a long history of uninterrupted preferred dividend payments. Preferred stock dividends are typically fixed, meaning they do not change over time