Which of the following statements pertaining to preferred stock is not correct? Multiple Choice Preferred stock may have an adjustable rate which pays a dividend that is adjusted, usually on a quarterly basis O Preferred stock dividends are contractual obligations that must be paid in potable years. Most preferred stock issues are nonparticipating, meaning that the shareholders are ented to receive only dividends based on the stated vidend rate. Preferred shareholders are given pretorence with respect to both duidend distributions and in liquidation of the company