Which of the following is false when it comes to preferred stock?

I. If a company suspends the dividend on its preferred stock, it must pay preferred stockholders all missed dividends before it can pay any dividends to common stock holders

II. Preferred stock holders are ahead of bond holders in line to receive assets following a liquidation

III Preferred stock dividends are guaranteed, unlike common stock dividends

Multiple Choice

• All are false

• None are false

• Only II is false

• Only III is false

• Only II and III are false