Which of the following statements regarding common and preferred shares is TRUE?

Select one:

a. All common shares must have the same rights to vote and receive dividends.

b. Dual class stock may give some classes of stock more votes per share than the other classes.

c. A major disadvantage of financing with preferred stock is that preferred stockholders typically have extra voting rights over the common stockholders.

d. A proxy gives a shareholder the right to purchase additional shares issued by the company in proportion to their share holdings before it is offered to outsiders

e. A big advantage in using preferred stock financing is that dividends paid on preferred stocks are tax deductible

Clear my choice