Which of the following is TRUE concerning preferred stock?

Select one:

a. Preferred stockholders are often referred to as residual claimants.

b. A call feature is a feature that allows preferred stockholders to change each share into a stated number of shares of common stock.

c. A preferred stockholder is sometimes referred to as a residual owner, since in essence he or she receives what is leftthe residualafter all other claims on the firm's income and assets have been satisfied.

d. Although preferred stock provides added financial leverage in much the same way as bonds, it differs from bonds in that the issuer can pass a dividend payment without suffering the consequences that result when an interest payment is missed on a bond.