Which one of the following statements regarding Preferred Shares is TRUE?

Select one:

a. Participating preferred shares will share in any dividends paid to common shareholders.

b. In a bankruptcy, preferred stockholders are paid out before bondholders

c. Preferred dividends that are cumulative will lose their right to any unpaid dividends if not declared by the Board of Directors in the year

d. An advantage of issuing preferred shares over common shares is that the preferred dividends paid are tax deductible.

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